A slightly dated reading of U.S. job openings for January
showed vacancies are falling, but by less than forecast and
still showing a tight labor market that has 1.9 vacancies for
every unemployed worker. But the rate at which people were
leaving jobs voluntarily was falling and layoffs were up.
Private sector job creation remained robust last month,
however, according to ADP numbers.
Today's weekly jobless numbers will give another snapshot.
Another pause for thought came from China's February
inflation numbers that show annual consumer price rises slowed
to just 1%, the lowest rate in a year.
Combined with persistence of producer deflation, the data
questioned some narratives about the impact on global inflation
of China's re-opening from COVID lockdowns but also showed price
pressures were no obstacle to more government stimulus there.
More broadly on Thursday, interest rates markets retained
their dramatic re-pricing and relatively resilient stock markets
tilted negative again. The dollar backed off recent
highs.
The state of play on the Fed radar is that the implied peak
rate is now as high 5.65% for the July-September period, with
perhaps the most eye-catching rethink on where markets now see
year-end Fed rates. The implied end-2023 rate is now above 5.50%
- more than a full percentage point above where it was assumed
on February 1.
Two-year Treasury yields held above 5% and 10-year yields
above 4%.
European and U.S. stock futures were in the red on Thursday.
U.S. President Joe Biden will travel to the swing-state of
Pennsylvania on Thursday to unveil a federal budget plan laden
with spending proposals and higher taxes on the wealthy that
will form a blueprint for his expected 2024 re-election bid.
U.S. House Republicans and Democrats showed no sign of
surrendering partisan positions after a briefing on the nation's
$31 trillion debt on Wednesday. Biden said his proposal will cut
the nation's deficit by nearly $3 trillion over 10 years, though
it relies on tax increases to do so while Republicans are
pushing for sharp cuts to domestic spending.
Elsewhere, South Africa's rand fell to its lowest in almost
3 years overnight after S&P Global late Wednesday downgraded its
outlook on South Africa to "stable" from "positive", citing
infrastructure constraints and a severe power crisis.
In banking, Credit Suisse shed 6% after the
embattled lender delayed publishing its annual report due to the
U.S. market regulator raising questions about earlier financial
statements.
JPMorgan has sued Jes Staley, its former private
banking head and later Barclays Plc's chief executive,
accusing him of entangling it with sex offender Jeffrey Epstein,
and saying Staley himself had been accused of sexual assault.
Shares in failed crypto lender Silvergate Capital dropped
45% in pre-market trading after it said it planned to wind down
operations and voluntarily liquidate after it was hit with
losses following the dramatic collapse of crypto exchange FTX.
Key developments that may provide direction to U.S. markets
later on Thursday:
* U.S. weekly jobless claims, Feb Challenger layoffs data
* Federal Reserve releases quarterly financial accounts of the
United States; Fed Vice Chair for Supervision Michael Barr
speaks on crypto assets
* French President Emmanuel Macron and Britain's Prime Minister
Rishi Sunak hold bilateral summit in Paris
* U.S. Treasury auctions 30-year bonds
* U.S. corporate earnings: Oracle, Ulta Beauty
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
More jobs than jobseekers in the US U.S., job openings fall China consumer inflation slowest in a year Japan GDP revised down on weak consumption ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(By Mike Dolan, editing by Elaine Hardcastle
mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
