Overseas Headlines – June 7, 2024

June 7, 2024

United States:

Strong US Payrolls and Wage Growth Push Back Bets for Fed Cuts

US job growth surged in May and wages accelerated, prompting traders to push back the expected timing of Federal Reserve interest-rate cuts.

Nonfarm payrolls advanced 272,000 last month, a Bureau of Labor Statistics report showed Friday, beating all projections in a Bloomberg survey of economists. Average hourly earnings climbed 0.4% from April and 4.1% from a year ago, both picking up from the prior report.




ECB Officials Get Cautious on More Cuts as Wages Pick Up

European Central Bank officials offered wary views on further interest-rate cuts at a time when pay pressures are proving stubborn, with one even raising the prospect that another move won’t materialize.

A day after the Governing Council delivered on its promise to lower rates but revealed a consumer-price forecast that left investors querying where policy is headed next, data showed accelerating wage increases — and governors signaled that they’re now back in a watchful phase.




China’s Exports Surge More Than Expected in Economic Boost

China’s exports climbed more than expected in May, boosting hopes that the world’s second-biggest economy can maintain its momentum by relying on foreign markets even in the face of new tariff threats.

Exports rose 7.6% in dollar terms from a year earlier, while imports increased 1.8%, the customs administration said Friday. That left a trade surplus of almost $83 billion for the month. Economists had forecast that exports would expand by 5.7% and imports by 4.3%.




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