Economic Data Reports Cause Rumbles Across US and Canada
Thursday’s economic data reports from the US and Canada sparked mixed reactions as they unveiled the current landscape. While the US services sector exhibited resilience with an uptick in non-manufacturing PMI to 54.5, the ADP National Employment report indicated a cooling labor market with only 99,000 jobs added instead of the anticipated 145,000. This reflects the lowest hiring rate in three years.
Across the border in Canada, the S&P Global Canada Services PMI for August stood at 47.8, showing a slight improvement from July’s 47.3 but still signaling a sector under strain, remaining below the neutral 50 mark.
Investors were hopeful leading up to Friday’s non-farm payrolls report, a critical measure of economic health according to the US Federal Reserve. However, the markets took a hit as the report revealed only 142,000 new jobs created instead of the expected 160,000. Worries about economic resilience and potential struggles until interest rate adjustments arrive sent the VIX above 22.
In Canada, Statistics Canada’s labor force survey indicated a modest rise of 22,000 jobs last month, coupled with a bump in the jobless rate from 6.4 percent in July to 6.6 percent.
Crypto Market Continues to Suffer in September
Since the significant drop on August 5, the crypto market has been grappling with various challenges including regulatory uncertainties and wavering investor sentiment. Both Bitcoin and Ether have witnessed declines, with Bitcoin down by 4.2 percent and Ether by 6.5 percent over the previous week until Friday afternoon.
Bitcoin’s price corrections at the beginning of each month in Q3 have stalled in recent weeks due to lackluster demand from retail investors and pessimism surrounding ETFs. The downward trend initiated after reaching US$65,000 on August 25, further exacerbated by diminished miner profitability and increased mining difficulty.
Ether’s struggles are similarly attributed to reduced activity on the Ethereum mainnet and underperforming Ether ETFs.
The recent sharp declines saw Bitcoin dropping to US$53,304 and Ether to US$2,192 on Friday according to CoinGecko, reflecting an overall bearish sentiment. Concerns about a potential US recession drove investors to shy away from volatile assets like cryptocurrencies, leading to a prevailing “sell-on-rise” mentality.
Broadcom’s Quarterly Results Fall Below Expectations
Broadcom’s earnings report for the third fiscal quarter, released on Thursday, showcased a 47 percent year-on-year revenue increase totaling US$13.07 billion — slightly surpassing the expected US$13.03 billion. Despite the revenue growth, Broadcom’s performance in the quarterly results seemed unimpressive, as it failed to meet market expectations.