Ok Jobs Report; London Terror Attack; Qatar’s Isolation Lead to No Change
Headlines ran the absolute gamut over the weekend into Monday, yet markets remained little changed. Perhaps the myriad political shocks have finally numbed markets. Here’s what we know…
$1 The US jobs report came in well under estimates at 132,000 jobs added, however unemployment fell to 4.3%. The unemployment rate is now at its lowest in 16 years. Markets enjoyed a rally Friday, despite the missed target. Market index investors reaped well.
$2 London suffered yet another terrorist attack, carried out by three assailants over the weekend. Markets remained surprisingly resilient on Monday as details, raids, and arrests emerged over the attack. The attack led Pres. Trump to go completely off the rails about security and his travel ban, drawing dismissal from London’s mayor, Saddiq Khan.
$3 Saudi Arabia, Egypt, the UAE, and Bahrain announced cuts of diplomatic, air, sea, and land ties to Qatar today. Support for terrorist groups is chief among reasons given for this isolation. Saudi Arabia has long feuded with Qatar, this being the most severe of the interactions of late. This only serves to add further shocks to the oil markets, something to watch.
Through all of this, US markets were only down slightly after giving away early gains. This news barrage can have lasting effects on the global economy, however. Time will tell what changes the UK proposes to combat terrorism and how that effects Europe and the US.
That’s it for now….