Investors were offered some interesting data today, especially from the United States. US jobs data showed even more worrying signs, suggesting that the condition of the US labor market is deteriorating. On the other hand, German data released today showed industrial production increasing more-than-expected.
US - more worrying signs from jobs market
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appRecently released data from the US jobs market showed some worrying signs. While ISM employment subindices began to deteriorate some time ago already, now deterioration can also be seen in 'hard data'. Data released on Tuesday showed JOLTS dropping below 10 million for the first time in almost 2 years while yesterday's ADP print missed expectations and came in below 3-, 6- and 12-month averages.
More bad news was offered today with Challenger report showing higher-than-expected planned lay-offs (increase of almost 320% YoY!) while jobless claims climbed to the highest level since early-December 2022. A streak of worrying jobs data makes tomorrow's NFP reading even more important as it hints that employment drop may be looming in the United States. Weaker data from jobs market pushed market odds for Fed hikes lower and now money markets see around-50% chance of a 25 basis point rate hike at May 3, 2023 meeting.
Markets see around-50% chance of 25 bp Fed rate hike in May. Source: Bloomberg
Europe - German industrial production increases
German industrial production data for February was the only noteworthy print from Europe today. Data turned out to be a positive surprise with German industrial output increasing 2.0% MoM in February (exp. 0.1% MoM). A point to note is that work day adjusted annual data climbed above 0.0% for the first time since September 2022 and reached 0.6% YoY. A point to note is that higher output in February was seen almost all across the economy.
Annual German industrial production climbs into positive territory for the first time since September 2022. Source: Bloomberg, XTB
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
