G20 Aftermath: It’s All About The Jobs!

This week’s trading will be influenced mostly by the non-farm payroll numbers that are due Friday. With no real job creation how can one talk of a recovery? Without job creation, consumer spending which accounts for 2/3the US economic activity will be focused only on the bare necessities.

The expectations for Friday are a loss of 100k jobs based on the government laying off half of its temporary census workers.  ”Stock investors” will be reading carefully into any weakness in the private sector hiring. This could be the “worry” that would push the market into negative territory.

Before we hit the employment numbers, there are economic variables that will influence the indexes this week, consumer confidence and pending home sales. We will also be entering into earnings season.

The G20 meeting is over with an economic prescription. I think it will be shrugged off by investors based on what I read. It’s funny how the final report mentions 2 countries indirectly in the final statement. Please see points 11 and 12:

11. Advanced deficit countries should take actions to boost national savings while maintaining open markets and enhancing export competitiveness. (Peek-a-boo USA)

12. Surplus economies will undertake reforms to reduce their reliance on external demand and focus more on domestic sources of growth. (Ni-ho-ma China)

And of course how can you not mention the European countries in number 9 of the report:

9…Those with serious fiscal challenges need to accelerate the pace of consolidation. Fiscal consolidation plans will be credible, clearly communicated, differentiated to national circumstances, and focused on measures to foster economic growth.

That report filled with “we pledged, we agreed, we encouraged” cost us 1.2 billion$. What a waste of my Canadian tax money. Amid the economic worries, it’s the jobs that will have the last word this week, not the G20.

Do you think the G20 meeting achieved anything?