US Dollar Lifted by Solid Wage Growth, Despite NFP Drop
Global stock markets decrease amid US-China trade war escalation. US President Donald Trump ordered the Trade Representative to consider tariffs on additional $100b in Chinese imports, in addition to the $50b list of 1300 product lines. Japan’s Nikkei fell by 0.36% today, the DAX is down 0.5%, while the CAC decreased by 0.3%.
US dollar was boosted by wage growth, despite Nonfarm payrolls (NFP) rose by only 103.000 in March. The data was lower than the consensus estimate for the creation of 193.000 jobs and below the 241.000 positions that the ADP report indicated on Wednesday. The previous month’s reading of NFP was revised to 326.000 from the 313.000 registered initially. The jobless rate held steady at 4.1%, missing expectations for a further drop to 4.0%. Average hourly earnings rose 0.3% last month after edging up 0.1% in February. The gain lifted the annual increase in average hourly earnings to 2.7% from 2.6% in February.
The euro fell under the pressure of weak data on industrial production in Germany. Germany's industrial production fell by 1.6% in February after rising 0.1% in January. Economists had expected growth of 0.3%. On an annualized basis, Germany's industrial production in February increased by 2.6%, which is much lower than the 6.3% growth recorded in January. Economists predicted an increase in production by 4.4%. This indicator attracts a lot of attention, as it is the main indicator of the power of the manufacturing sector. Eurozone retail PMI fell to 50.1 in March.