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Case study - Trading catalysts
The US Jobless Claims yesterday came out much better than expected. This is the most timely indicator we have on the labour market.The market reacted strongly, with the S&P 500 (chart below) rallying by 2.4% in a single day, which was the best one day gain since November 2022.WHY THE MARKET REACTED LIKE THAT? You need to know the underlying reasons to understand the market reaction.Last Friday, the market got spooked by a surprisingly weak US jobs report where the unemployment rate jumped to 4.3% from 4.1%. We saw a wave of risk-off flows that eventually got exacerbated on Monday.Now, there's been a debate about the legitness of the data as there were good arguments for a negative

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