Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a664552
Markets surge to new highs as US jobs figures impress
But despite the latest gains, analysts have been quick to point out that markets face some significant risks over the hours ahead.
The latest round of US unemployment data will be released at 1.30pm and if the reading is positive there should be a rally in the dollar, as the US creeps closer to its goal of calling time on stimulus.
Monument Securities' Marc Ostwald said following successive rounds of upbeat news, investors' expectations could be far too high, particularly in the face of the $85 billion in federal spending cuts due to bite this year and which are bound to be a headwind over the next two quarters.
Ostwald argued: 'After the better than expected ISM data and ADP private employment reading, markets go into today's labour report with expectations skewed to the upside of the revised consensus of 165,000 for headline payrolls and 170,000 for private payrolls.
'But the actual readings will still have "some work to do" to beat the three-month moving average of 200,000, and the FOMC would still be minded to describe this as signalling "modest" payrolls growth, with coming months likely to suffer a drag from government layoffs as sequestration starts to gain some traction.'
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
More about this:
Look up the shares
More from us
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on May 16, 2013 at 16:17