Pre-Market Pulse 7th December – Equities slip as early signs economy is slowing are adding up

Overnight – Equities slip as early signs economy is slowing are adding up

Equities finished lower overnight as investors digested another round of softer jobs data pointing to a slowing economy, boosting hopes that sooner rather later rate Federal Reserve cut is on the horizon.

Data from payroll processor ADP showed that private U.S. employers added just 103,000 jobs last month, down from a revised mark of 106,000 in October. Economists had forecast an increase of 130,000 jobs. The data arrived a day after job openings dipped to their lowest mark in over two years in October and point to a slowing job market that could not only slow the economy but also force the Fed a rate cut early next year. The slew of the jobs data will continue on Thursday and Friday with release of weekly initial jobless claims and nonfarm payrolls, respectively.

Oil prices below $70 a barrel to the lowest level since June on Wednesday after weekly U.S. petroleum data showed a larger-than-expected draw in weekly U.S. inventories, but also a much larger in build in gasoline supplies at time when U.S. crude production climbed to record highs.