ADP unemployment report soothes a nervous market
Stocks in Europe are getting hammered today, and US stock futures have been down throughout the morning in anticipation of the release of the ADP National Employment Report. But the report, finally released at 8:15 this morning, shows pretty decent employment numbers – and with that the fear of a huge sell off when Wall Street opens this morning was eased.
The ADP report showed that U.S, nonfarm payrolls increased 209,000 last month, and the estimates for January and February were revised up to +182,000 and +230,000 respectively.
Nonetheless, markets in Europe remain down sharply, with the German Dax down nearly 150 points, or over 2 percent. Other European markets such as the British FTSE and the French CAC 40 are also down sharply in afternoon trading in Europe.
Investors appear to be concerned about the Fed’s belief that no additional financial stimulus will be necessary as the U.S. economy appears to recovering. However, the view is not universally accepted, what with Europe appearing to be sliding back in recession and unemployment rising across the continent. An economic slowdown in Europe would most like put a damper on U.S. exports.