Financial Markets Daily Report10 July 2023
In the last session of the week, a mixed US labor market report left investors trading cautiously. While the pace of job creation eased to the lowest reading in 30 months in June (209k) and the previous two months were revised lower, wage increases remained elevated (4.4% y/y) and the unemployment rate ticked down to 3.6%.
- In the last session of the week, a mixed US labor market report left investors trading cautiously. While the pace of job creation eased to the lowest reading in 30 months in June (209k) and the previous two months were revised lower, wage increases remained elevated (4.4% y/y) and the unemployment rate ticked down to 3.6%.
- This release, while offering mixed signals about the tightness of the US labor market, points towards further interest rate hikes in the Federal Reserve at its July meeting, at least. In this context, yields on sovereign bonds declined in Europe and flattened in the US, while stock indices were mixed.
- Elsewhere, the euro strengthened and fluctuated below $1.10 while oil Brent prices increased above $78 per barrel.
- This week the focus will be on the US CPI release of June (Wed.), the University of Michigan consumer sentiment index (Fri.), the German Zew (Tue.) and the beginning of the Q2 corporate earnings results.