Macro the Mightiest: ET Prime Special - Part 6: How the US ‘jobs report’ impacts markets, and why

Every month, the global financial engine pauses for a single data point: The US Employment Situation Summary. While ostensibly a headcount of workers, this “jobs report” has the power to shift billions in valuation within seconds in the US markets and, by extension, global markets. By deconstructing the Fed’s "dual mandate" on maximum employment and price stability we can uncover why investors treat these figures as a crystal ball for interest rates. Today, we will explore the connection between the US labour data and stock market volatility across the globe. In this series we discuss one macroeconomic factor every fortnight. Even a basic understanding will tell you when to react and when not to react to macroeconomic headlines.