ZFX: The worries of second wave of pandemic limited the surprising NFP
The Nonfarm payrolls in June rose by 4.8 million, which was much better than the expected. However, the second wave of the pandemic especially in the US is still an uncertainty to the market, triggering investors to lock the profit first.
The record-setting figures boosted the sentiment in the early US session, but profit-taking activities limited the whole market. The three major Wall Street indexes all edged higher on Thursday, while the strong Nasdaq jumped the most, up 0.52%.
ZFX analyst Jacob Leung said that, the steady greenback on Thursday reflected that the market sentiment was not that bullish, and stock markets retraced after the short rally. On the other hand, gold price is still trading at a relative high level, which may imply risk aversion under the growing tension between China and the US.
On Friday, overall Asia Pacific stocks rise as the latest figure show that China’s services sector has significantly improved in June, the Caixin/Markit services PMI rises to 58.4.
ZFX analyst Jacob Leung said that, the market will keep monitoring the spike of the pandemic, particularly in the US. The dollar move show a sign of weaker sentiment, meaning that it would be easier to magnify the existing negative factors, dominating the market next week.