Financial and Economic Brief - June 6, 2017

by © Liberty Publishing, Inc.

May Jobs Numbers Lower Than Expected

Overall, there was “weak hiring and sluggish wage growth” in May. There were 138,000 jobs added, and average hourly wages rose just 2.5% on an annual basis. Economists had expected job growth to be 185,000. The unemployment rate fell to 4.3% from 4.4%, but the number of people in the workforce declined. “While the Fed still struggles to go in June, the one big takeaway from this report is that a September rate hike is largely off the table. September was always going to be a struggle because of its proximity to the debt ceiling debate,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets.
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Yuan Rises Against Dollar

The yuan rose 0.5% against the dollar on Thursday, bringing its progress in the past four trading days to 1.2%. Currency traders say the recent rise is most likely about Beijing proving a point to its critics. In particular, Chinese officials were infuriated by a downgrade last week from credit rating agency Moody's. “There is a possibility that the authorities want to squash any worries” about China's debt burden after the Moody's announcement, Jason Daw, a currency strategist at Societe Generale, wrote in a research note Thursday. The yuan's “surge” is changing some analysts’ opinions on what it will do next.
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New Factory Orders Drop

According to the Commerce Department, new orders fell in April for the first time in five months. In fact, factory goods orders dropped 0.2%, after a 1.0% increase in March. However, factory orders were up 4.4% from a year ago. Manufacturing is being supported by a recovery in the energy sector that has led to demand for oil and gas drilling equipment. But a slowdown in motor vehicle sales could hurt production in the coming months. The government reported on Friday that employment at motor vehicles and parts manufacturers fell by 1,500 jobs in May.
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Latest News

Financial and Economic Brief - June 20, 2017

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Financial and Economic Brief - June 13, 2017

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Financial and Economic Brief - June 6, 2017

• May Jobs Numbers Lower Than Expected - Overall, there was “weak hiring and sluggish wage growth” in May. There were 138,000 jobs added, and average hourly wages rose just 2.5% on an annual basis.

• Yuan Rises Against Dollar - The yuan rose 0.5% against the dollar on Thursday, bringing its progress in the past four trading days to 1.2%.

• New Factory Orders Drop - According to the Commerce Department, new orders fell in April for the first time in five months.

Financial and Economic Brief - May 30, 2017

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• May Jobs Report Due This Week - Several economic reports are due this week with particular focus on the May employment report, which will show whether the job market was able to maintain its upswing.

• Oil Oversupply Worries - Oil prices fell on worries that cuts to oil output by the world's big exporters may not be enough to deplete a global glut that has depressed the market for almost three years.

Financial and Economic Brief - May 23, 2017

• U.S. Stocks Rise - The Dow Jones industrial average rose about 100 points, the S&P 500 rose 0.4%, and the Nasdaq composite grew half a percent.

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Financial and Economic Brief - May 16, 2017

• NY Manufacturing Drops in May - According to the Federal Reserve Bank of New York, manufacturing in New York State dropped for the first time in seven months to minus 1 in May, from 5.2 in April (a reading below zero is an indication of contraction).

• Energy Ministers Agree to Extend Cuts - The energy ministers of Saudi Arabia (OPEC) and Russia (non-OPEC) recently met and agreed to do “whatever it takes to achieve the desired goal of stabilizing the market.”

• U.S. China Beef Deal - President Trump and his trade team took steps to clear two trade disputes with China that have negatively affected the U.S. livestock business for years.