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Read our latest Global Investment Views!

Read our latest Global Investment Views!

Read our latest Global Investment Views!

Read our latest Global Investment Views!

Read our latest Global Investment Views!

The US unemployment rate rose to 4.3%, surpassing expectations of 4.1%, and Non-Farm Payrolls were weaker than anticipated at +114K compared to forecasts of +175K. The disappointing labor data, combined with weaker manufacturing data and the highest jobless claim reading in 11 months, triggered a sharp decline in US yields. Ten-year US Treasury yields fell by 11 basis points (bps) to 3.85%, and the policy-sensitive two-year rate declined 18 bps to 3.96%. Weaker US data raised concerns about whether the Federal Reserve should have already initiated rate cuts. (Markets are pricing in four 25 bps cuts in 2024)

Most Outstanding Points of the Week In the United States, non-farm payrolls revealed the creation of 216,000 jobs in December, exceeding expectations of 168,000. Meanwhile, the unemployment rate remained at 3.7%. In the United States, the FED minutes showed that there is still a possibility of a reference rate cutback this year, although a message of caution prevailed. In China, manufacturing activity contracted for the third consecutive month in December and came in weaker than consensus expectations. In Mexico, the government carried out a global issuance that reached US$7.5bn (the largest so far in this administration) through the placement of three bonds at different maturities. Important Events in the Coming Weeks In the U.S., several members of the FED will hold speeches 01/08 - 12 In the US, December inflation to be released 01/11 #Activest #EconomicIndicators #JobMarket #FedMinutes #InterestRates #WeeklySummary

Hot jobs report continues to slash cuts expectations ❌ 👊The US economy added 216k new payrolls in the last month of 2023, ahead of the 170k forecasted, suggesting that the US labour continues to be tight enough to deny expectations for rate cuts. 🥵On the same lines, the unemployment rate remained at unchanged at 3.7%, below the 3.8% expectation. To make things worse, hourly earnings came in at 4.1% on an annual basis, well above the 3.9% forecasted, indicating that inflationary pressures from wage trends is still evident despite the Fed’s tightening campaign. Overall, today’s report is in total disconnect with the 6 rate cuts priced in by futures markets. As a result, the odds of a cut in March fell to 57%, down from 63% yesterday and 74% a week ago. #nonfarmpayrolls #labourmarket #data #us #interestrates #inflation #economy

Economic Update 📈📉 On 2 August 2024, as reported by the US Bureau of Labor Statistics (BLS), the U.S. nonfarm payrolls (NFP) added 114,000 jobs in July, much lower than the market expectation of +176,000 as well as the previous month’s reading of +179,000 (revised lower from +206,000). 📉 The unemployment rate climbed to 4.3% from 4.1% a month ago. Meanwhile, wage inflation, as measured by the change in the Average Hourly Earnings, declined to 3.6% from 3.8% over the same period. 📊 Overall, the disappointing labor market data reinforced the prevailing market belief that there will be at least two rate cuts this year, with the first expected in September. As a result, the 2-year and 10-year UST yields plummeted 28 bps and 19 bps to 3.88% and 3.80%, respectively, on Friday. 📉🔻 #ConnectwithBPAM #EconomicUpdate #UnemploymentRate #WageInflation #InterestRates #USMarkets #FinancialNews