Global Macro Environment Is Still Highly Uncertain

Published: May 16, 2023 13:57

Source: SMM

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SHANGHAI, May 16 (SMM) - The US non-farm payrolls rose 253,000 in April, far exceeding expectations, and its unemployment rate was 3.4%, hitting a new low since 1969.

SHANGHAI, May 16 (SMM) - The US non-farm payrolls rose 253,000 in April, far exceeding expectations, and its unemployment rate was 3.4%, hitting a new low since 1969. The labour market performed well, easing expectations for interest rate cuts. But on the other hand, the US April CPI rose 4.9% year-on-year, which was lower than market expectations and the previous reading. The US core CPI rose 5.5% year-on-year in April, which was in line with market expectations but lower than the previous reading. CPI data showed signs of slowing US inflation, giving the Federal Reserve room to pause interest rate hikes. US bank stocks plummeted again on Thursday, led by Westpac Banking Corp. Renewed fears of banking crisis has put pressure on the Fed to raise interest rates. Gold purchases by global central banks hit a record high compared with the same period of previous years in the first quarter. The US debt ceiling negotiation meeting has been postponed. The global macro environment is still highly uncertain. China’s economic data fell far short of expectations in April. M2 increased by 12.4% year-on-year, compared with 12.6% expected and 12.7% previously.

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Macro economy

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