The number of Americans filing for unemployment benefits unexpectedly fell last week to a two-month low, pointing to labor market strength that could pave the way for the Federal Reserve to raise interest rates by December.
The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to sustained labor market strength even as the pace of job growth is slowing. Initial claims for state unemployment benefits decreased 4,000 to a seasonally adjusted 259,000 for the week ended Sept.3, the lowest level since mid-July, the Labor Department said on Thursday.
What a "beautiful" U.S. Employment report for the equities bulls, just like the metaphorical beauty of Goldilocks in the fable. There was reason for some trepidation on the part of the bulls coming into last Friday’s Employment report after a week of sharply divergent U.S. and global economic data.
Crude oil prices pop on reports of Saudi Arabia announcing what Russian oil minister Alexander Novak calls a "historic” agreement. The world’s two largest oil producers have a deal to do something, but we are not quite sure what that is.
The U.S. dollar stumbled on the news that the economy added fewer jobs than expected in August. The U.S. nonfarm payrolls (NFP) report showed only 151,000 positions versus the forecast of 180,000. Unemployment rate kept steady at 4.9%. The American currency was able to recover and finish the week ahead versus major pairs but the disappointing employment report puts a big dent on the chances of a rate hike in September.
The U.S. and it's central bank will be centre of attention once again on Friday as we get the latest labour market report for August and try to determine what it means for interest rates in the coming months.The U.S. and it's central bank will be centre of attention once again on Friday as we get the latest labour market report for August and try to determine what it means for interest rates in the coming months.
U.S. employment growth slowed more than expected in August after two straight months of robust gains and wage gains moderated, which could effectively rule out an interest rate increase from the Federal Reserve this month.
U.S. futures are pointing slightly higher on Thursday while in Europe, indices have had a positive start and in many cases are threatening to or have already broken above what has been quite a congested summer trading range.
Dollar bulls received ample encouragement on Tuesday following the impressive consumer confidence report that bolstered sentiment toward the U.S. economy. The Consumer Confidence Index (CCI) for August lurched to its highest level in almost a year at 101.1 consequently reinforcing expectations over the Federal Reserve raising U.S. rates in 2016.