Archives of “December 3, 2021” day

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Pimco says concerned the Fed is behind the curve on inflation, need to act more quickly

  
  Analysis

PIMCO’s chief investment officer for global credit spoke at a Bloomberg event on Thursday

Some blunt comments on how the Federal Open Market Committee has lagged:

 

  • “We’ve been very concerned that the Fed has frankly been behind the curve and needed to act more quickly”

 

Added that he welcomed the pivot from Powell and that market should take tightening in its stride:

 

  • “I don’t think it’s going to be so much of a dramatic event for markets
  • I think the stock market, the housing market and consumers can handle it.”

 

Japan services PMI for November 53.0 (vs. 50.7 prior)

  
Analysis, Economy

Jibun Bank Japan Services and Composite PMIs for November improved as coronavirus states of emergency declaration eased back.

Services 53.0
  • prior 50.7
  • new orders to their highest since January 2020
Composite 53.3
  • prior 50.7

From the report, in brief:

  • Despite increasing demand and evidence of pressure on capacity, Japanese service providers decreased staffing levels for the first time since July.
  • Both manufacturers and services firms pointed to prominent rises in cost pressures in November, with average input prices rising at the fastest pace since August 2008.

November US Nonfarm Payroll report due Friday 03 December 2021 – what to expect

  
Analysis, Economy

The US NFP labour market report is due at 1330 GMT. Its expected to show continued gains for jobs.

Consensus is for the headline job gains at +550k (prior 531K)
  • unemployment rate expected 4.5% (prior 4.6%)
  • average hourly earnings expected 0.4% m/m, prior 0.4%
  • average hourly earnings expected 5.0% y/y, prior 4.9%
  • average weekly hours expected 34.7, prior 34.7
Given Fed Chair Powell pivoted to saying inflation is not transitory the usual intense focus on the jobs report is not here today. A downside surprise would be a complicating factor while an upside surprise would add to the likelihood of a quicker taper and should provide a tailwind for the dollar.
The US NFP labour market report is due at 1330 GMT. Its expected to show continued gains for jobs.

The US and EU have issued a joint statement with strong concerns over China

  
  Analysis

A US / EU joint statement has been issued following talks Washington Thursday.

  • U.S. Deputy Secretary of State Wendy Sherman and the Secretary General of the European External Action Service, Stefano Sannino met.
Reuters report that:
  • the US & EU expressed strong concern over China’s “problematic and unilateral actions” in the South and East China Seas and the Taiwan Strait.
—
That doesn’t come as much of a surprise, similar concerns have been expressed from both parties in the recent past.
biden xi meeting

S&P and Dow erase yesterday’s losses.

  
Analysis, US Market

Dow, S&P and NASDAQ snap a two day losing streak

The S&P and Dow indices erased yesterday’s losses. The Dow S&P and NASDAQ erased today losses. The Russell 2000 index also rose after declines over the last few days took the price 10% off its all-time high before rebounding.

The final numbers are showing:
  • Dow industrial average rose 618.54 points or 1.82% at 34640.59
  • S&P index rose 64.11 points or 1.42% of 4577.14
  • NASDAQ index rose 127.28 points or 0.83% 1531.33
  • Russell 2000 index rose 58.93 points or 2.74% at 2206.34
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