The much anticipated US non-farm payroll report was released today, much better than expected as the United States surprisingly added more jobs in September than projected.
Markets rallied as sentiment was lifted and risk was back on. The dollar jumped versus the yen and Swiss franc, and all risk currencies like the euro and sterling, Canadian dollar, surged to new highs.
A whopping 103,000 jobs were added to non-farm payrolls last month, exceeding the predicted 60,000, giving investors more reason to believe that the United States economy is not heading back into a recession and is in fact growing as employers step up hiring.
Despite more Americans going back to work, the increase was not sufficient to budge the official U.S. unemployment rate which remained unchanged at 9.1 percent.
The economy needs to grow by at least a 2.5 percent rate, with payrolls expanding by 150,000 positions a month, to keep the jobless rate from rising.
Recent reports on manufacturing, business spending and auto sales suggest the economy fared better in the third quarter after growing at an anemic 1.3 percent annual pace in the April-June period.
But some economists are warning Europe’s debt crisis threatens to all but derail the U.S. recovery.