Posted on October 11, 2022 The market reacted very positively to the bad data from the ISM index, as it happened in July and despite the fact that the FED continues with its hawkish rhetoric. However, Friday’s US employment data lowered expectations of a FED turnaround, with broad curve widening. All in all, the weak macro data from across the Atlantic led investors to think that the Fed might take a softer stance. Although, several members of the entity were in charge of sending messages to the market indicating that their position is to reduce inflation to 2%, thus slowing down the stock markets and smoothing the progress of treasury returns. In the United States, non-farm payrolls in September revealed the creation of 263,000 new jobs, in line with estimates and well below previous months (average of 400,000 in the first part of the year), slightly reducing the figure compared to the previous period (300,000). Therefore, the US unemployment rate improves slightly due to the drop in participation (3.5% vs. 3.7% the previous month) and salary increases are slowing down. Even so, this slowdown in the labor market is not fast enough for the Fed to consider slowing down the process of raising interest rates. Next week’s inflation data will be important to gauge the FED’s willingness to raise 75 bps or 50 bps. At the moment, and after knowing these new employment data, the market and analysts are discounting an upcoming rise of 75 basis points. INFORMATIONTitleThe debate between central banks and the economic slowdown continue to condition the evolution of the marketDescriptionThe market reacted very positively to the bad data from the ISM index, as it happened in July and despite the fact that the FED continues with its hawkish rhetoric. Author GLOBALCAJA