Bankinter : US non-farm job creation again beats forecasts: 339K vs 195K estimated and 294K previous (revised from 253K). The unemployment rate rebounds to 3.7% versus 3.5% estimated and 3.4% previous (a historical low). Average wages/hour decelerate (year-on-year) to +4.3% versus +4.4% estimated and previous. Assessment: Despite mixed signals from labour market figures, the labour market remains strong. The unemployment rate increased by three tenths and the number of unemployed...

Franck Dixmier, Global CIO Fixed Income (Allianz GI) | Investors could be forgiven for thinking they have been here before. As the clock ticks down on the US debt limit deadline, markets are once again getting familiar with the intricacies of US politics. In what has become a semi-regular partisan wrangle, politicians in Washington are in talks over raising the federal debt limit before June, the month when the government...

Link Securities| The minutes of the May Federal Open Market Committee (FOMC) meeting showed that its members were divided on the need for further increases in the benchmark interest rate. In this regard, it was said that, based on expectations of a slow return of inflation to 2%, a further firming of monetary policy at future meetings was likely to be warranted. In general, participants were unsure how much further...

Norbolsa | After Tuesday’s meeting, both Biden and congressional leaders were optimistic about a deal to raise the debt ceiling “in the coming days” even though McCarthy insisted that positions are still far apart. For his part, Biden publicly stated that during the negotiations there was a general consensus that “default is not an option” and thus lowered fears of a worst-case scenario.

Link Securities | The Empire State Manufacturing Index of manufacturing activity in New York, compiled by the New York Federal Reserve, unexpectedly slipped to -31.8 points in May, down from 10.8 points in April, and versus the expected reading of -3.75 points by the analyst consensus. The reading is the lowest in four months, pointing to a sharp drop in manufacturing activity in New York. New orders (-28.0 points vs...

Alicia García Herrero (Natixis) | The strategic competition between the US and China started in early 2018 when the Trump administration implemented untargeted import tariffs and reoriented most of its trade efforts towards widening the technology gap between China and the US with a special focus on deep tech, such as semiconductors. The Biden administration has pushed even further in that direction. However, one should not forget that well before...