MPC Morning Call 12th February 2026 – Higher than expected jobs data curbs rate cut bets
Stocks ended mixed overnight as losses in financial and communication services stocks offset a boost to sentiment from a blowout January nonfarm payrolls report. .
WATCH ON YOUTUBE MPC Morning Call 12th February 2026 – Higher than expected jobs data curbs rate cut bets Stocks ended mixed overnight as losses in financial and communication services stocks offset a boost to sentiment from a blowout January nonfarm payrolls report.. U.S. stock futures initially rose after a stronger-than-expected January jobs report but quickly lost momentum as traders reassessed Federal Reserve rate-cut expectations. The Labor Department reported that nonfarm payrolls grew by 130,000 in January—well above forecasts of 66,000—while the unemployment rate eased to 4.3%. Analysts described the report as encouraging, especially with the first rise in manufacturing employment since early 2024. However, the gains were modest, suggesting that the Fed is likely to keep rates steady in March given the mix of slow wage growth and improving employment data. Despite the upbeat headline, underlying data showed continued weakness in the labour market. Job growth for 2025 was revised sharply lower, and indicators such as a persistently low quit rate and longer job search times pointed to an economy still struggling to regain full employment vigour. Analysts noted emerging trends like “reverse headhunting,” where workers now pay recruiters to find roles—signalling reduced bargaining power for job seekers. While experts agreed the January report marks progress, they cautioned that a truly strong Labor recovery remains some way off. The employment data also shifted expectations for monetary policy and bond markets. Traders slashed bets on Fed rate cuts, sending U.S. Treasury yields higher, with the 10-year yield rising to 4.17% and the 2-year to 3.51%. Fed officials, including Kansas City’s Jeffrey Schmid, stressed that inflation near 3% remains the greater concern, reinforcing the case for keeping policy restrictive. Meanwhile, corporate news weighed on sentiment—Robinhood, Lyft, and Ford all reported earnings that fell short of expectations, though Ford’s outlook for stronger 2026 profits helped limit losses. Commodities, Energy & FX ASX Overnight: SPI 8956 (-0.01%) The Day Ahead: The ASX will be dominated by earnings again today. Corporate news ANZ earnings – Click here to read summary NST Earnings - Click here to read summary PME Earnings - Click here to read summary jobs data, inflation, market performance, earnings reports, investment strategies
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