Radio Rallies & Reversals

European markets have rolled over, giving back gains after the weak US jobs report for November. A gain of only 39 thousand jobs was well below expectations after the better than expected ADP report on Wednesday; despite this, American shoppers spent over $1 billion online on Monday November 29th, the biggest one-day total ever recorded, according to comScore, an internet-research firm. Monday's sales alone were 16% higher than last year's "Cyber Monday" total of $887m. And in traditional bricks-and-mortar stores, the story is similar. The National Retail Federation estimated that 212m people hit the shops over the Thanksgiving holiday weekend, 9% more than in 2009, while the average amount spent by each rose from $343 to $365.

So what's the upshot of the weak jobs report? As I've said before, bad news is good news - Expect the US Fed to continue it quantitative easing program and perhaps expand it.

GB