August 5, 2024
United States:
Goolsbee Says Fed Less Reactive Than Markets, Won’t Overreact
Federal Reserve Bank of Chicago President Austan Goolsbee reiterated the central bank’s job is not to react to one month of weaker labor data, adding markets are much more volatile than Fed actions.
A worse-than-forecast US jobs report Friday, which capped a soft week of data, spurred recession concerns and helped drive a global stocks rout. Goolsbee said there are some cautionary indicators — like the rise in consumer delinquencies — but economic growth continues at a “fairly steady level.”
Europe:
Euro Zone’s Big Growth Laggard Has a Lot of Cheery Consumers
Some of the euro zone’s most upbeat consumers can be found in one of the region’s most sickly economies — Germany.
That mismatch was on display on Tuesday when the country was revealed as the only big member of the currency area to have suffered falling output during the second quarter. Survey data for July released concurrently showed yet another improvement in German consumer confidence.
Asia:
China State Banks Sold Government Bonds, Pulling Yields Higher
China’s state banks sold government bonds in large batches, a move that helped to pull benchmark yields higher from record lows, according to traders.
The state banks offloaded 10-year sovereign notes in batches of 100 million yuan ($14 million), according to three traders onshore. The selling focused on bonds coded as “240011,” which were issued in May and are one of the most actively traded in the government debt market.
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