· U.S. employers hired more workers than expected in July and raised their wages, signs of labor market tightness that likely clears the way for the Federal Reserve to announce a plan to start shrinking its massive bond portfolio.
· The Labor Department said on Friday that nonfarm payrolls increased by 209,000 jobs last month amid broad-based gains. June's employment gain was revised up to 231,000 from the previously reported 222,000.
Average hourly earnings increased nine cents, or 0.3 percent, in July after rising 0.2 percent in June. That was the biggest rise in five months. On a year-on-year basis, wages increased 2.5 percent for the fourth straight month.
· "The Fed set a low bar for balance sheet normalization to begin in September, and today's number cleared that bar with elan," said Michael Feroli, economist at JPMorgan in New York.
· The U.S. dollar was set for its biggest one-day gain against a basket of major currencies so far this year after a strong U.S. July payrolls report and comments from National Economic Council director Gary Cohn about lowering the U.S. corporate tax rate.
The dollar index, which measures the greenback against six major rivals, jumped about 1 percent to a one-week high of 93.774 .DXY after the Labor Department said nonfarm payrolls increased by 209,000 jobs last month and Cohn's comments. It was last up 0.7 percent at 93.529.
Cohn told Bloomberg TV on Friday that the 35 percent U.S. corporate tax rate should be more in line with the 24 percent average rate among other countries in the Organization for Economic Cooperation and Development.
The dollar index's gains put it on track for its biggest one-day percentage increase since Dec. 15. The euro fell more than 1 percent against the dollar to a four-day low of $1.1729 EUR= after touching a more than 2-1/2-year high of $1.1909 on Wednesday.
Against the yen, the dollar gained as much as 0.9 percent to a one-week high of 111.04 yen JPY=, rising off recent seven-week lows.
· President Donald Trump arrived in office having promised a bold $1 trillion infrastructure investment plan over 10 years for roads, bridges, airports and transit systems crumbling by the day across the United States.
But nearly seven months later the administration has produced few details on the future of federal infrastructure funding, one reason why state and municipal governments have issued fewer bonds to improve roads, water systems and other projects so far in 2017.
· Oil prices rose on Friday after a strong U.S. jobs report bolstered hopes for growing energy demand, but crude prices declined for the week, pressured by rising OPEC exports and strong U.S. output.
Global benchmark Brent futures LCOc1 gained 41 cents, or 0.8 percent, to settle at $52.42 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 55 cents, or 1.1 percent, to settle at $49.58.
Reference: Reuters
Thai
Eng