Previous Trading Days Events 14.05.2024

The UK jobs market is cooling and thats gradually translating into lower wage growth. This is the main takeaway from the latest UK labour market figures. The unemployment rate notched up to 4.3 British wages grew by a more than expected figure while other figures suggested the labour market is losing some of its inflationary heat. Regular wages, excluding bonuses, rose by 6.0 in the first three months of 2024 compared with the same period in 2023.

The BoE said that the labour market remained tight by historical standards but the central bank could consider cutting rates over the summer. Last week, it signalled that it could start cutting rates from its current 16year high of 5.25 as early as its meeting next month.

Source httpswww.reuters.comworldukukregularpaygrowsbystrongerthanexpected6020240514

The PPI report shook the markets yesterday when the U.S. producer prices increased more than expected in April amid strong gains in the costs of services indicating that inflation remained stubbornly high early in the second quarter.

Inflation at the producer level is back on the front burner this month and consumers are sure to feel the heat as higher production costs will feed into the inflation they see in the goods and services they buy, said Christopher Rupkey, chief economist at FWDBONDS. If Fed officials were seeking some moderation from the inflation outbreak in the first quarter, it is not showing up at the start of the…