Economic fears became causes of US job growth
US job growth increased in August, but the unemployment rate rose to 3.8% and wage gains slowed. The Labor Department employment data showed 736,000 people entered the job market, raising the participation rate to its highest level in 3-1/2 years. Economic slowdown fears are likely luring individuals back to work. July job opportunities fell to…
China will promote high-end manufacturing and modern service industries.
Chinese President Xi Jinping pledged to expand service market access and cross-border trade, aiming to grow the home market, import high-quality services, and restructure its core data system. This comes amid a decline in commerce due to lower demand.
The S&P 500 showing bullish on entire month
The August employment report improved soft landing prospects for the Fed, with a slowing job growth trend, a rise in unemployment, and a better labor supply-demand balance. However, seasonal influences in the stock market may not be as favorable this week. Equities are entering a historically poor month, with September being the S&P 500’s poorest…
US market stocks are recovering this week
Investors face a lighter schedule and holiday-shortened week as the Federal Reserve’s next interest rate decision approaches. US markets will be closed on Labor Day, but the week ahead will feature services sector updates, the Federal Reserve’s Beige Book report, and some corporate profits. Stocks recover after dropping most of the month, with the Nasdaq…
Italy may speed up the sale of its stake in MPS bank
Italy may speed up the sale of its interest in Monte dei Paschi di Siena bank, according to deputy prime minister Antonio Tajani. The state should not become a banker and Economy Minister Giancarlo Giorgetti should decide how to sell the Tuscan lender stake. The proposal is expected to be made “in the short term.”…
Interest rate hikes has not been felt on current economy
Former Fed vice chairman Alan Blinder claimed the full impact of March 2022 interest rate hikes on the economy has not yet been felt. The Fed has lifted its target rate by 525 basis points to 5.25%-5.50% over 17 months. Blinder believes core inflation reacts slower to monetary policy than headline inflation, suggesting the Fed…
The August jobs report would beneficial for the FED
August unemployment reached its highest level since February 2022, but this increase may not be detrimental to the US labor market. The tight labor market allows for more supply, and new entrants may take time to fit in. Civil labor force participation increased by 736,000, reaching 62.8%, the highest level since February 2020. The August…
Interest rate expected will tolerate in recent month
US hiring rose in August, but pay growth slowed and the unemployment rate reached its highest level since February 2022. The Fed should finish tightening monetary policy, and interest-rate exposure should be tolerated more than in recent months. Two-year Treasury yields fell 11 basis points to 4.75% before recovering, but swaps traders are pricing in…