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03 May 2024

US Job Gains Slow, Reassuring Markets, While Pointing to Weaker Growth

The US job creation engine decelerated in April, relieving financial markets, but pointing to economic turbulence ahead. According to data released by the Bureau of Labor Statistics this morning, 175,000 jobs were added in the month, undershooting the 240,000 consensus forecast, and missing the 200,000 that is now believed sufficient to offset net growth in the labour force. Revisions to the prior months saw overall gains lowered by a total 22,000 positions. The unemployment rate rose to 3.9 percent – above the 3.8 percent expected – and wage gains slowed, helping ease inflation fears. Average hourly earnings climbed 0.2 percent...

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Risk Appetite Improves as US Payrolls Report Looms

The US dollar is cruising into a third day of losses and Treasury yields are softening even as investors brace for what is expected to be another strong payrolls report. North American equity futures are rallying ahead of the open after Apple reported stronger-than-expected earnings and provided a more optimistic sales forecast, and risk-sensitive currencies like the Canadian dollar are advancing off very low levels. Economist estimates going into this morning’s non-farm payrolls number are widely dispersed, ranging from a 150,000-position gain on the low end to 280,000 on the high end, with the median landing near the 240,000 mark....

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