US: Labour market showed sustained recovery - ICICI Bank : Treasury Research

- Non-farm payrolls (NFP) increased by 195K in June 2013, higher than market expectations of an increase of 165K

- Total job addition for April was revised sharply higher from 149K to 199K, while that for May was revised from 175K to 195K

- With the latest print, the monthly average for 2013 stood at 202K compared to 185K per month average in H1 2012

- Private sector continued to be a strong driver of job growth while government sector was a net loser as sequester cuts continued to weigh on federal employment

- As per the household survey, the unemployment rate remained unchanged at 7.6% in June after rising a tad last month

- The June NFP print signaled continued recovery in the labour markets and strengthened speculation of an early tapering of Fed's asset purchases. As a result, the Dollar gained sharply post the data release while US Treasuries and gold plunged.

Source : Equity Bulls

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