Northern,WI  10/6/2012 (BasicsMedia)  —  Unemployment Numbers Out Markets Trading Higher this morning as more people have jobs and markets are up as we enter the weekend.  This was a key job report for the President as the number of workers was part of recent debate between Romney and Obama.  I expect focus will shift from the Mitt Rally and focus on earnings and retail as we head into the holidays.

The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years. The rate fell because more people found work, a trend that could impact the presidential election.  The Labor Department says employers added 114,000 jobs in September. The economy also created 86,000 more jobs in July and August than first estimated. Wages rose in September and more people started looking for work.  The revisions show employers added 146,000 jobs per month from July through September, up from 67,000 in the previous three months. The unemployment rate fell from 8.1 percent in August, matching its level in January 2009 when President Barack Obama took office.

Stocks were mostly better in Asian trade. Australia added one percent, the Hang Seng was up a half percent and the Nikkei gained 0.4%. European indexes are relatively strong, with the Dax up three quarters of a percent and the Footsie better by 0.4%. US stock futures are up a slight fraction.  The Bank of Japan their target rate steady at 0.10% and also left alone their asset purchase and credit-loan programs at the policy meeting last night. They expect the economy to level off for the time being and will monitor closely the impact of foreign exchange moves on the economy and prices.

Reuters quotes central bank sources in the know saying the Bundesbank is prepared to participate in the OMT bond purchasing, despite their reservations on the program.  France’s Hollande, Italian boss Monti and Spanish PM Rajoy are set to meet today on the sidelines of a conference in Malta.  Irish central bank cut its forecast for its GDP by a couple of tenths each for 2012 and 2013; they now see 0.5% GDP this year and +1.7% next, because of a more marked global slowdown.

The September reading of the Employment Situation Report is due out at 7:30am CDT. The Unemployment Rate is expected to rise one tenth from the month before to 8.2%; the total Non-farm Payrolls estimate is +115k and the private sector Payrolls is forecast to be +130k; the estimate for the Average Hourly Wages is +0.2% on a monthly basis and +1.8% year on year; and the Average Work Week is expected to be steady at 34.4 hours. The August reading of Consumer Credit is due out at 2:00pm CDT, it is expected to be +$7.25 billion.




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