U.S. Adds 4.8 Million Jobs, Exceeding Forecast; Claims Elevated
“The rebound in the U.S. labor market accelerated in June as the economy reopened more broadly, though filings for unemployment benefits remained elevated last week as coronavirus cases picked up. Payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month, according to a Labor Department report Thursday. The unemployment rate fell for a second month, by 2.2 percentage points to 11.1%, still far above the pre-pandemic half-century low of 3.5%.”
U.K. Firms See Lingering Fallout on Sales, Jobs From Virus
“U.K. companies expect the damage to business from the coronavirus to linger on into next year, countering the optimistic noises coming from some Bank of England policy makers this week. Firms in a central bank survey in June said sales in the second quarter would be almost 40% lower than they otherwise would have been due to the pandemic. They expect only a gradual recovery over the next year and warned of a persistent impact on jobs.”
China’s Central Bank Is Signaling a Slower Pace of Easing
“China’s central bank is slowing down the pace of monetary easing amid signs of economic recovery, handing disappointment to investors who have worried about tightening liquidity and rising bond yields. Since early May, the People’s Bank of China has tolerated a steady increase in money market rates and the highest 10-year sovereign bond yield in five months. And although a fresh liquidity injection was signaled by the government two weeks ago, Governor Yi Gang is taking an unusually long time to deliver.”
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