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02 Aug 2024

US Payrolls Miss Forecasts, Exacerbating Hard Landing Fears

US labour markets slowed far more than expected in July, making the economy more likely to gouge the runway as it lands in the months ahead. According to data released by the Bureau of Labor Statistics, 114,000 jobs were added in the month, widely missing the 175,000 consensus forecast, and revisions to prior months saw overall gains lowered by a total 29,000 positions. Wage gains kept decelerating, pointing to a continued softening in demand for workers. Average hourly earnings climbed just 0.2 percent month-over-month, down from 0.3 percent in the prior month, and were up 3.6 percent year-over-year. Perhaps most...

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Global Selloff Intensifies

In an unusual turn of events, investors are suddenly acting as if bad news for the economy might also be bad news for financial markets. During yesterday’s session, evidence of rising unemployment and a deepening contraction in the US manufacturing sector helped compound the effects of a series of underwhelming earnings reports, triggering a plunge in major stock indices – and the selling looks set to continue at this morning’s open, as futures point to further losses. Air seems to be coming out of the artificial intelligence bubble. Updates from the likes of Alphabet, Amazon, Apple, and Microsoft this week...

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