June 1, 2023
US Equity-Index Futures Waver as AI Rally Cools: Markets Wrap
US equity futures fluctuated as the latest jobs data suggested the Federal Reserve has room for more tightening, while a rally driven by excitement over prospects for artificial intelligence-rated stocks cooled.
Employment growth at US companies last month exceeded all projections, highlighting a durable labor market that continues to buttress the economy. First-time claims for unemployment benefits were broadly in line with economists’ estimates last week, a separate reports showed.
Euro-Area Core Inflation Eases But Won’t Stop ECB Hiking
Underlying inflation in the euro zone dipped by more than expected, though European Central Bank President Christine Lagarde said there’s “no clear evidence” that it’s peaked and pledged to lift interest rates further.
Consumer prices excluding items like fuel and food advanced by 5.3% from a year earlier in May — down from April’s 5.6% increase and less than the 5.5% median estimate in a Bloomberg survey of economists.
Asia’s Factories Signal More Pain as China Recovery Falters
Asia’s factories saw further easing in demand in May as China’s faltering recovery weighed on a region already smarting from a global trade downturn.
Purchasing managers indexes for export powerhouse Taiwan dropped to 44.3 from 47.1 in the previous month, while Vietnam registered the lowest reading since September 2021, according to S&P Global on Friday. South Korea’s factory gauge ticked up marginally in May although still remaining very much in contraction territory. A reading above 50 signals expansion and below that a contraction.
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