A look at the day ahead in U.S. and global markets from Mike Dolan.
Whatever quarterly growth statistics are showing, there’s little sign yet of looming recession in U.S. Employment.
And if the Federal Reserve sees a tight U.S. Labour market as both a window and a reason to aggressively tackle inflation, then this week’s readouts on hiring confirm the more hawkish interest rate horizon now being priced by markets.
Stocks wobbled again after the numbers and two-year Treasury yields are hovering just under 3.5%, their highest since just before the banking crash of 2007/08. Inflation-adjusted two-year yields from the index-linked bond market are at their highest since the pandemic hit.
Surprisingly strong report on U.S. Job vacancies was for the month of July, during a bout of summer optimism in U.S. Markets around peak inflation. August readings on private sector jobs from ADP later and the national payrolls report will test how durable corporate hiring plans have been since.