December payrolls data from the US was much stronger than expected:
The title +256,000 significantly beat expectations of 160,000.
The highest expected rate It was +200,000while the 140K-185K range showed the largest collection. If you didn't know this going into the data you are missing out. Results that are far outside of expectations usually move forward significantly, as seen on Friday. That's why Guisseppe and I post such data ahead of big releases like NFP, CPI and the like.
Anyway, back to Morgan Stanley.
After the very strong data analysts see no change in their Fed expectations:
- still expecting a Federal Open Market Committee (FOMC) rate cut in March (the meeting is on the 18-19)
- “the report should reduce the likelihood of Fed cuts in the near term.”
- our more favorable outlook on inflation keeps us thinking that a cut in March is still more likely than not.”
