Market Wire, North America

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...

The Federal Reserve’s preferred inflation measure remained stuck at elevated levels in March, but a feared overshoot was avoided, helping alleviate market tensions. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.3 percent in March from the prior month, but January’s number was revised higher to 0.5 percent, bringing the three-month annualised pace up to 4.4 percent, well above the central bank’s target range. On a year over year basis, base effects saw core price growth stabilising at 2.8 percent, the same as in February, slightly higher than consensus estimates....