Non-farm payrolls beats estimates; Trump aims to revise Dodd Frank
01:30, FEBRUARY 06 2017, BY MARGARET YANG YAN
A better-than-expected US non-farm payrolls number led to a rebound in US equities on Friday.
The non-farm payrolls number increased to 227k in January, a big jump from the previous month’s reading of 156k and also higher than consensus forecast of 175k. It shows that the employment market continues to improve at a faster-than-expected pace. And this will probably lead to a more hawkish Federal Reserve at its next meeting in March.
The Dow Jones soared 0.93%, erasing losses from earlier in the week. Most gains were observed in the financial sector, which soared 1.99% on average. Wall Street is probably cheering Donald Trump’s move to revise the Dodd-Frank Act, which are regulatory rules to inhibit banks and brokers after the 2008 subprime crisis. “We expect to be cutting a lot out of Dodd-Frank, because frankly, I have so many people, friends of mine that had nice businesses, they can’t borrow money” Donald Trump said.
If the Dodd-Frank Act is revised or removed, it will mark a great step towards financial deregulation. A deregulated Wall Street will create a new wave of bullish sentiment in the short term.
In Singapore, Starhub announced poorer-than-expected fourth quarter earnings on Friday. The company’s Q4 net profit after tax shrank 33% to 54 million, mainly due to rising operating expenses versus flat revenue for the last quarter. Its full-year profit was down 8.3% to 341.4 million. The earning per share (EPS) of $0.198 was slightly below market consensus of $0.205.
US 30 – Cash