June 5, 2024
United States:
Stocks Rise as ADP Payrolls Bolster Rate-Cut Bets: Markets Wrap
Stocks rose after a private payrolls report pointed to a slowdown in the US labor market that would allow the Federal Reserve to start cutting interest rates.
Equities extended this week’s advance as data showed hiring at US companies grew at the slowest pace since the start of the year. Private payrolls increased 152,000 last month, according to the ADP Research Institute. The median estimate called for a 175,000 increase. Treasury yields edged lower. Swap contracts continued to show bets on a first Fed cut in November, and possibly another in December.
Europe:
ECB’s Inflation Challenge Looks More and More Like the Fed’s
The uptick in euro-zone inflation is increasingly drawing comparisons to the US — fueling concern that the European Central Bank could face similar impediments to lowering interest rates as the Federal Reserve.
While there have been clear differences in the drivers of price growth either side of the Atlantic – a point ECB officials repeatedly stress — some economists see important parallels and warn against underestimating the risk of more persistent pressures.
Asia:
Taiwan Central Bank Says Weak Yen Has Limited Impact on Economy
Taiwan’s central bank said the weak Japanese yen is having only a limited impact on its economy, with the Taiwan dollar experiencing less volatility than most Asian currencies, according to a report to lawmakers seen by Bloomberg News.
Taiwan’s exports and economy are mainly impacted by the global economy, though traditional industries such as machinery tools will likely be affected by the yen falling, according to the report, which was filed a day before Governor Yang Chin-long appears before the legislature’s finance committee to speak on the impact of the Japanese currency depreciating.
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