Declines in the US after weak data from the labor market and Yellen comments – Onet.pl

At the close the Dow Jones Industrial fell by 0.48 per cent., To 17842.25 points.

S & amp; P 500 lost 0.45 percent. and amounted to 2,080.16 points.

Nasdaq Comp. It fell by 0.40 per cent. and amounted to 4,919.64 points.

US equity valuations are already quite high, which can potentially be a threat to the stability of the markets – assessed on Wednesday, Federal Reserve Chairman Janet Yellen.

“Podkreśliłabym that valuation the equity markets are now already generally quite high, “- said Yellen in response to a question during a panel discussion organized by The Institute for New Economic Thinking, on monetary policy, which in addition to Yellen participated IMF Managing Christine Lagarde.

“They are not so high, when compared to returns on the shares to return on safe assets, such as bonds, they can potentially pose a threat but “- she added.

US Labor Department reported the first calculation of the performance American employees work in sectors other than agriculture fell by 1.9 percent. in the first quarter of 2015. Analysts expected in the first quarter decline in labor productivity by 1.9 percent.

Unit labor costs in the first quarter rose 5.0 percent. qoq. Analysts had expected growth here of 4.5 percent.

a disappointing ADP private report Employer Services, in accordance with which in companies in the US came in April 169 thousand. jobs. Analysts assessed that in the US economy in April came to 200 thousand. jobs. In March it came to 175 thousand. jobs – according to data from ADP when adjusted to 189 thousand. before correction.

Data ADP constitute a negative signal ahead of Friday’s government report on the labor market. For these data, after a weak result in March – employment in the US increased this month in the US only 126 thousand. jobs – economists are hoping for a better result for April. The market consensus assumes that the number of jobs in non-agricultural sectors in April rose by 225 thousand.

After Wednesday Data from the labor market strongly weakened dollar. The EUR / USD rose during the session above the level of 1,136. The US currency is the same as the weakest against the euro since February.

The focus of investors remains debt market. Yields on 10-year US bonds moved closer to the level of 2.24 per cent., Continuing Tuesday’s gains after a disappointing report on the US trade deficit.

The increase in profitability was negatively affected by the amount of applications for mortgages in this week, the size of which fell by 4.6 percent. In the week ended May 1 compared to the previous one.

Investors’ attention is also focused on Greece. ECB officials are considering tightening liquidity conditions for Greek banks in the form of an increase in the discount rate to pledge that Greek banks were paid in exchange for emergency financial assistance (ELA) – Bloomberg reported citing anonymous sources. Bloomberg also reported that the bank manager will want to przenalizować how much of ELA loans can offer Greek banks.

The government in Athens announced that because of “serious discrepancies” between the creditors of Greece, the European Commission and the International Monetary Fund (IMF), negotiating their representatives with Greece stalled. The Greek government stressed that due to the fact that “it is impossible to agreement between the institutions can not reach a compromise,” and the responsibility lies solely with the lenders.

After data that indicated a decline in crude oil inventories in the US, rising prices of raw material. Brent crude oil prices neared the level of $ 69 per barrel, and this is their highest levels this year.