Dow Jones Closes Higher as US Labor Market Shows Signs of Cooling
The Dow Jones New York Stock Exchange ended Thursday’s session on a positive note as the US reported higher-than-expected numbers of applicants for unemployment benefits. This data indicates a potential cooling of the US labor market, which may influence the Federal Reserve’s (Fed) decision on interest rate hikes.
According to the CME Group’s FedWatch Tool, investors are currently weighing a 73% probability that the Fed will maintain interest rates within the range of 5.00-5.25% during its upcoming meeting on June 13-14. Meanwhile, 29.9% of investors anticipate a 0.25% increase to 5.25-5.50%. However, investors are also considering the possibility of a 0.25% interest rate hike at the Fed’s July meeting, with a 50% probability.
European Central Bank Predicted to Raise Rates Twice Before Year-End
Analysts expect the European Central Bank (ECB) to raise interest rates by 0.25% on June 15. This decision is anticipated to follow the Federal Reserve’s meeting on June 13-14, during which the Fed is expected to raise rates by 0.25%. After these potential adjustments, most analysts predict that the ECB will temporarily suspend interest rate actions until the end of the year.
Isuzu Motors Denies Plans to Move Production Amid Contradictory Statements
Isuzu Motors has issued a confirmation statement from its Tokyo office, denying any plans to relocate production from a factory in Thailand to Indonesia. This announcement contradicts a statement made by Mr. Argus Kumiwang Cartasasmita, Indonesia’s industry minister, who stated that Isuzu Motors intends to move production from Thailand to Indonesia, with production set to begin as early as next year.
JPMorgan Report Highlights Eurozone’s Resilience to US Banking Crisis
JPMorgan has released a report asserting that the crisis in US regional banks will have no impact on the eurozone. The report emphasizes that Eurozone banks have not been significantly affected by the liquidity crunch experienced by US regional banks, despite both banking sectors guaranteeing low deposits.
French President Condemns Knife Attack, Six Injured in Annecy Incident
French President Emmanuel Macron has denounced a knife attack carried out by an assailant in France, labeling it as the act of a coward. According to the French interior ministry, six people were injured when a man stabbed individuals in a park in the southeastern city of Annecy. Among the victims were four children and two adults, all sustaining serious injuries. While the police are investigating the motive behind the attack, they have stated that it is not considered a terrorist act.
Labor Department Reports Increase in US Unemployment Claims
According to the latest data from the Labor Department, initial claims for unemployment benefits rose by 28,000 to a seasonally adjusted 261,000 last week. This figure marks the highest level since October 2021 and surpasses analysts’ estimates of 235,000. The four-week average, which provides a more stable measure of the labor market by eliminating weekly volatility, increased by 7,500 to 237,250.
Investors Await CPI Release and Fed’s Monetary Policy Meeting
Investors are closely watching the release of the May Consumer Price Index (CPI) on June 13, just before the Federal Reserve announces the results of its monetary policy meeting on June 14. Analysts anticipate that the headline and core CPI will show a slowdown, but they are expected to remain higher than the Fed’s 2% target. These economic indicators will provide insights into inflation trends and potentially influence the Fed’s decision-making process.