Previous Trading Days Events 07.06.2024

The news yesterday reported that Canadas jobless rate increased as expected and wage growth accelerated. The Jobless rate was reported to be 6.2 from 6.1 in April. The average hourly wage growth for permanent employees accelerated to an annual rate of 5.2 from 4.8 in April. That growth rate was the highest since Januarys 5.3 rate.

Annual inflation in April stood at 2.7. 

Little bit of an ugly job report, said Jules Boudreau, senior economist at Mackenzie Investments. The biggest worry is that the wages have gone up and thats a problem for the Bank of Canada, he said, adding that in the past the bank was hesitant to cut rates because wages were rising too quickly.

The BoC cut its key policy rate to 4.75 and indicated that further easing would be gradual and dependent on data. The bank will have another months job data before its next rate decision announcement on July 24.

Source httpswww.reuters.commarketscanadasmayjobgainsexceedsforecastswagegrowthaccelerates20240607

The data on Friday 7th June showed that U.S. job growth accelerated far more than expected in May. The unemployment rate jumped to 4.0 for the first time since January 2022, while nonfarm payrolls increased by 272K jobs last month, way more than the 185K forecast.

PADHRAIC GARVEY, REGIONAL HEAD OF RESEARCH, AMERICAS, ING, NEW YORK

Its really quite difficult for the Fed to be anywhere near a rate cutWe see the odd weak reading in terms of activity, but then…