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Post-NFP Stock Rally Erased at London Close

EQUITIES
  • Post-NFP equity bounce proves short-lived, with the e-mini S&P back in negative territory and approaching the post-data low of 3711.00 and yesterday's lows at 3704.25.
  • Following release, Citi comment that the jobs report keeps pressure on the Fed to push policy rates higher, and slightly raises the probability of another 75bps move in Dec (although they retain their view of a +50bps move).
  • They see the uptick in unemployment rate countered by strength in other labour market data and are skeptical today's release points to a new trend toward job losses.

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