Blow to Donald Trump as U.S. jobs growth slows down

Andrew Cummings
June 3, 2017

The unemployment rate, however, fell to a 16-year low of 4.3 per cent. The ISM manufacturing PMI index rose to 54.9 in May from 54.8 in April. Economists had forecast the ADP report would show a gain of 185,000 jobs.

The report could signal a strong government payrolls report on Friday that includes hiring in both public and private sectors, which would cement expectations for an interest rate hike by the Federal Reserve in two weeks.

According to the ADP National Employment Report, private payrolls increased by 253,000 jobs last month, beating economists' expectations for a gain of 185,000 jobs. The dollar index, which measures the greenback's strength against a basket of major currencies, fell 0.3 percent.

The euro EUR= slipped to $1.1218 from Thursday's high of $1.1257, its highest in more than a week. The euro was 0.6 per cent higher against the United States dollar at US$1.1276, after earlier rising to a seven-month peak of US$1.1282.

The yuan stepped back to 6.7572 to the dollar from Thursday's high of 6.7245. In commodities, oil prices stabilized near three-week lows following a bigger-than-expected drop in US crude inventories.


Global benchmark Brent crude futures fell to $49.63 a barrel, while U.S. West Texas Intermediate crude by more than a dollar to $47.36 per barrel. The Australian dollar fell to $0.7394, from $0.7431 earlier in the day.

The US dollar also slid to seven-month troughs versus the Swiss franc, trading last at 0.9633 franc, down 0.9 per cent.

The U.S. central bank said "most" districts had cited worker shortages across a broadening range of occupations and regions.

The economy added 138,000 net new jobs for the month, well below analyst expectations, while the jobless rate decreased by a tenth of a point to 4.3 per cent. Government data on Thursday showed U.S. crude inventories dropped by 6.4 million barrels, greater than a forecast 4.4 million-barrel decline.

Spot gold was down 0.04 percent at $1,267.58 per ounce by 3:05 p.m. EDT (1905 GMT), having peaked the previous day at its strongest since April 25 at $1,273.74.USA gold futures fell 0.4 percent to settle at $1,270.1.


UK's benchmark FTSE 100 closed up 0.4, the pan-European FTSEurofirst 300 ended the day up by 0.41 percent, Germany's Dax ended up by 0.4 percent, France's CAC finished the day up by 0.8 percent.

US 10-year Treasuries were last up 16/32 in price, with yields dropping to 2.161 percent from 2.217 percent late on Thursday.

The Dow Jones Industrial Average .DJI rose 135.53 points, or 0.65 percent, to end at 21,144.18, the S&P 500 .SPX gained 18.26 points, or 0.76 percent, to 2,430.06 and the Nasdaq Composite .IXIC added 48.31 points, or 0.78 percent, to 6,246.83. The three-year was up 1/32 in price, and its yield fell to 1.427 percent from 1.446 percent.

Oil prices stabilized near three-week lows following a bigger-than-expected drop in US crude inventories. US crude settled up $0.04, or 0.08 percent, at $48.36 per barrel.


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