Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil And ADP Payrolls In Focus

By CMC Markets (Colin Cieszynski)Market OverviewJul 06, 2017 08:20
Oil And ADP Payrolls In Focus
By CMC Markets (Colin Cieszynski)   |  Jul 06, 2017 08:20
Saved. See Saved Items.
This article has already been saved in your Saved Items

Stock markets are trading lower overnight and into this morning‎. In Europe, the CAC is down 1.1%, the DAX and IBEX down 0.9% and the FTSE down 0.8%. In the US, NASDAQ futures are down 0.8%. Dow and S&P futures are down 0.4%, along with the Nikkei.

There doesn't appear to be a clear reason for the selloff beyond technical exhaustion and repositioning ahead of earning season. There has been more sabre rattling over North Korea, but markets one would expect to see most impacted, like the Nikkei and gold haven't moved. EUR and GBP are trading higher against USD, which could influence markets across the pond but not in North America.

US weakness could be partially due to yesterday's FOMC minutes, which indicated some members would like to start working down the balance sheet within a couple of months, while others would prefer to wait until later in the year. I still think they won't make another move until the debt ceiling and budget battles are sorted out.

The market with the most clear and decisive action today is crude oil. Shrugging off a 4% decline yesterday, WTI is up 1.5% this morning, with CAD climbing as well. A big 5.75 mmbbl drop in API oil inventories and a 5.0 mmbbl drop in API gasoline inventories ignited the rebound. Oil may remain active through today's DOE reports with traders looking for confirmation of these drawdowns.

Today’s ADP and Friday’s non-farm payrolls may give an indication of whether the US economy is still able to absorb the Fed easing back on the gas pedal.

Last month there was a huge discrepancy between ADP payrolls of 253K and non-farm payrolls of 138K. Because of this, we could see a significant downward revision to last month’s ADP figures or an upward revision to non-farm payrolls. Currency, traders are expecting ADP payrolls to drop back to 185K. Even though US manufacturing PMI reports were positive, the potential for a negative surprise remains.

US trade and Service PMI reports may also attract attention from traders looking for insight into whether the Fed may start cutting back on its balance sheet sooner, or later. We also could see positioning ahead of tomorrow’s G-20 summit with trade, North Korea and climate change among the potential flashpoints.

Oil And ADP Payrolls In Focus

Related Articles

FactSet Research Systems Inc
Podcast : Financial Market Preview - Friday 3-Dec By FactSet Research Systems Inc - Dec 03, 2021

US futures are indicating a flat to slightly lower open as of 05:00 ET. European equity markets slightly higher, following a mixed Asian trade. Much of the focus remains on the...

Oil And ADP Payrolls In Focus

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email