Unexpected Surge in US Unemployment Benefits Claims Rattles Markets

A startling jump in claims for Unemployment Benefits out of the US last week caught the markets off guard. Claims leapt to 261,000 from a previous 233,000, surpassing estimated figures of 236,000.

This unexpected surge led traders to hypothesise that the Federal Reserve may abstain from any rate hikes in their forthcoming June meeting. Correspondingly, the 10-year US bond yield dipped from 3.76% to 3.72%.

Dollar Stumbles, Major Currencies CapitaliseBank of Canada Ups Overnight Cash Rate, WTI Oil Slips, and Stocks Rally

The Bank of Canada announced an increase in its Overnight Cash Rate by 25 basis points, taking it to 4.75% from the previous 4.50% during its recent monetary policy meeting. However, the Canadian Loonie was largely unmoved against the Greenback, steadying at 1.3355 compared to the previous 1.3365.


▸ VIEW FULL MARKET PROFILE PAGE ◂

In the commodities sector, WTI Oil dipped by 2.18% to USD70.95, preventing the Loonie from gaining momentum.


▸ VIEW FULL MARKET PROFILE PAGE ◂

In Wall Street, stocks rallied. The DOW settled at 33,800 from a previous 33,650 while the S&P 500 saw a 0.58% increase to 4,295. Additionally, Germany’s DAX rose to 16,010 from 15,930.


▸ VIEW FULL MARKET PROFILE PAGE ◂

Global Treasury Rates, Consumer Credit, and Bank Lending

Global treasury rates were largely subdued. The UK 10-year Gilt yield slightly declined to 4.23% from 4.25%, while Australia’s 10-year bond rate inched upwards to 4.01% from yesterday’s 3.99%.

Other important economic data released indicated US Consumer Credit (m/m) scaled to USD23 billion against expectations of USD 22.2 billion. Meanwhile, Japan’s Bank Lending (y/y) rose to 3.4% from 3.2%, surpassing estimates of 3.1%.

The Eurozone Final Employment Change in Q1 matched median forecasts at 0.6%, mirroring the previous quarter’s figure. Additionally, French Private Payrolls exhibited a rise to 0.4% in Q1 from 0.2% in the prior period.

“The winners have attained a mindset – a unique set of attitudes – that allows them to remain disciplined, focused, and, above all,…
WELCOME BACK
Let´s create your 100%-free membership, instantly
This link is already saved
Your link has been saved

Welcome. Please set your update preferences (Optional. Default = all)

BLOOMBERG GLOBAL NEWS

Bloomberg video news feed with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

RBA ECONOMIC UPDATES

Periodic updates on the Australian economy, direct from the RBA, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

US FEDERAL RESERVE UPDATES

Bloomberg News focussed upon the Federal Reserve, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

FX/GLOBAL BRIEFS

Brief global updates with a focus upon currencies, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

ASX MARKET UPDATES

ASX-focussed updates, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

BLOOMBERG BRIEFS

Global briefs from Bloomberg with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED