Today's news headlines:
‘UK Pay and Hiring Slow as Companies Brace for a Slump, Survey Says’. The UK’s job market, one of the tightest in recent memory, might be starting to loosen, which should temper inflationary pressure. According to the Recruitment & Employment Confederation, demand for permanent staff fell for a second month, with vacancies growing at the slowest pace in almost two years, while wage pressure also eased. The availability of staff also continued to decline, suggesting that supply-side shortages are far from over. The release is a promising sign for the Bank of England, which closely watches the Labour market to judge future inflation. (Bloomberg)
‘China's Economy Is In for a Bumpy Ride as Covid Zero Comes to an End’. China’s announcement that it was ending its Covid Zero policy came as a surprise to many but in reality it is necessary to get the economy growing quickly enough to stave off public anger. Still, infections are likely to surge, forcing workers to stay home, while businesses may run out of supplies. The news is certainly welcome but it’s likely to be a volatile six months ahead for the world’s second largest economy. (Bloomberg)
Risk assets have been declining, with the S&P 500 dropping for a fifth consecutive day yesterday, while a gauge of European equity futures moved lower this morning. The US Dollar is little changed overnight, while the offshore Yuan steadied below 7 as investors weigh China’s easing of covid restrictions.
Aussie Trade Balance: 12.22b vs 12.44b previously
ECB President Lagarde Speaks: 12:00PM
US Weekly Jobless Claims: 1:30PM
Swiss Gov Board Member Maechler Speaks: 2:30PM
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