Swissquote Bank: Financial world unhappy about US job opportunities

Swissquote Bank: Financial world unhappy about US job opportunities

October 4, 2023

United States
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Even a hint of an improving US jobs market sends shivers down investors' spines.

'Although hirings and firings remained stable, the financial world was unhappy to see so many job opportunities offered to Americans as the data hinted that the US jobs market could be going back toward tightening, and not toward loosening’, reacts Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, today to the latest US employment numbers or JOLTS data. ‘That means that Americans will keep their jobs, find new ones, asked better pays, and keep spending. That spending will keep US growth above average and continue pushing inflation higher, and the Fed will not only keep interest rates higher for longer but eventually be obliged to hike them more.’

However, ‘JOLTS data is volatile, and one data point is insufficient to point at changing trend. We still believe that the US jobs market will continue to loosen. But the market reaction to yesterday’s JOLTS data was sharp and clear. The US 2-year yield spiked above 5.15% after the stronger than expected JOLTS data, the 10-year yield went through the roof and hit the 4.85% mark.’

 

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