US Unemployment Rate Falls, Taking Oil and Gold Prices Down with it

U.S. unemployment rate falls to 9.4% in July

2009-08-08 06:30:38

WASHINGTON, Aug. 7 (Xinhua) --

The pace of job losses in the United States narrowed in July to 247,000 and the jobless rate fell unexpectedly to 9.4 percent, the Labor Department reported Friday.

The July reading for job losses was much better than the 320,000 layoffs expected by economists, while the unemployment rate had been forecast to rise to 9.6 percent.

Since the recession began in December 2007, the U.S economy has lost a net total of 6.7 million jobs.

According to the Labor Department, the manufacturing sector shed 52,000 jobs last month while construction industries axed 76,000 jobs. Retail trade employment fell by 44,000 over the month.

Professional and business services got rid of 38,000 jobs, while employment in the federal government increased 7,000 over the month.

The average work week in July rose to 33.1 hours, after having fallen to 33 hours in June, the lowest on records dating to 1964.

The White House immediately hailed the unexpected data.

"This morning we received additional signs that the worst may be behind us," said President Barack Obama in remarks after the report was released. "We have pulled the financial system back from the brink."

However, Obama also warned that there were still many challenges ahead.

"We have a steep mountain to climb and we started in a very deep valley," said the president. "We have a lot further to go. As far as I'm concerned, we will not have a true recovery as long as we're losing jobs, and we won't rest until every American that is looking for work can find a job."

Oil falls as stronger dollar offsets encouraging jobs data

2009-08-08 06:32:30

NEW YORK, Aug. 7 (Xinhua) --

Oil prices fell on Friday as the U.S. dollar rose against the euro, weakening the purchasing power of buyers using other currencies.

Light, sweet crude for September delivery dropped 1.01 dollars, or 1.4 percent, to settle at 70.93 dollars a barrel on the New York Mercantile Exchange.

The contract initially rose after the release of the encouraging jobs data which showed the U.S. jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent in July, adding to optimism that the economy was turning around.

However, oil prices began to drop as the dollar got stronger against the euro. The Dollar Index rose more than 1.2 percent, undermining demand for dollar-priced assets such as oil used to hedge against inflation.

In London, Brent crude for September delivery dropped 1.41 dollars to 73.42 dollars a barrel on the ICE Futures exchange.

Editor: Mu Xuequan

Gold falls as dollar soars after U.S. jobless rate drops

2009-08-08 06:31:37

CHICAGO, Aug. 7 (Xinhua) --

Gold futures on the COMEX Division of the New York Mercantile Exchange declined slightly for the third session on Friday as unexpected jobless data boosted dollar to rise sharply, much reducing gold's appeal of safe-haven. Silver and platinum both ended a little higher.

Gold price for December delivery fell 3.40 U.S. dollars, or 0.4percent, to finish at 959.50 dollars an ounce.

The Labor Department said that non-farm payroll employment fell by 247,000 in July following a revised decline of 443,000 in June. The unemployment rate for July unexpectedly declined to 9.4 percent from 9.5 percent in June. Analysts had expected joblessness to grow to 9.6 percent and this is the first decline in 15 months.

Analysts indicated the bullish jobless data provided a strong signal of the beginning of a faster-than-expected economic recovery.

Buoyed by the jobs report, dollar jumped sharply with the rate against euro climbing more than 2 cents to 1.4193 dollars from the intraday low of 1.4413 by the end of gold floor trading time. The dollar index, a gauge measuring the greenback's value against other six main currencies, rose 0.931 point, or 1.2 percent, to 78.876.

Encouraging prospects of the U.S. economy and a stronger dollar both put some pressure on gold as the precious metal's appeal of hedge and safe-haven were reduced.

September silver finished at 14.668 dollars per ounce, up 2.3 cents. October platinum fell 5.10 dollars to 1268.50 dollars an ounce. 　

Editor: Mu Xuequan

Wall Street sets new highs as jobless rate dips

2009-08-08 06:33:20

NEW YORK, Aug. 7 (Xinhua) --

Wall Street jumped Friday with the Dow Jones Industrial Average and S&P 500 touching new highs for 2009, after the U.S. government reported the unemployment rate unexpectedly fell in July, offering a strong signal that the recession is easing.

The U.S. Labor Department posted that employers cut 247,000 jobs in July, the fewest in a year, and the unemployment rate dipped to 9.4 percent from 9.5 percent, the first decline since April 2008. Economists had expected an unemployment rate of 9.6 percent last month.

Financials led the rally, as American Express and JPMorgan Chase climbed strongly. American International Group's upbeat earning also boosted the market. The insurer rescued by the U.S. government reported its first profit in seven quarters as investment losses narrowed. Its shares soared over 20 percent.

On other corporate news, D.R. Horton, the largest U.S. homebuilder by sales, gained 7.8 percent, as Goldman Sachs added the stock to its "conviction buy" list.

The Dow Jones rose 113.81, or 1.23 percent, to 9,370.07. Broader indexes also went higher. The Standard & Poor's 500 index added 13.40, or 1.34 percent, to 1,010.48 and the Nasdaq climbed 27.09, or 1.37 percent, to 2,000.25. 　

Editor: Mu Xuequan

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