China announced a list of $60 Billion worth of US imports they plan to apply tariffs on after the threat came from the Trump administration considering imposing a 25 percent tax on $200 Billion worth of Chinese imported goods. Despite the recent positive earnings reports and solid labor market data today, overshadowed by the trade threats between the two largest economies, stock market is remaining flat this morning. Today's labor market data showed US hiring cooled in July but there was a significant upward revision in prior from which many perceived as a steady labor market and it was not enough to discourage the Fed's hawkish stance.
The June trade balance widened to -$46.30 Billion from the prior revised of -$43.20 Billion although it still came in shy of -$46.50 Billion survey. The change in Nonfarm Payrolls printed a slightly disappointing number at 157k vs. 193k forecast and an upwardly revised prior of 248k. However, wages were still steady with both Average Hourly EarningsMoM and YoY coming in line with surveys at 0.30% and 2.70%, respectively. Unemployment rate ticked down to 3.90% as forecasted from 4.00% prior, and Underemployment also decreased to 7.50% from 7.80% prior.
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China announced a list of $60 Billion worth of US imports they plan to apply tariffs on after the threat came from the Trump administration considering imposing a 25 percent tax on $200 Billion worth of Chinese imported goods. Despite the recent positive earnings reports and solid labor market data today, overshadowed by the trade threats between the two largest economies, stock market is remaining flat this morning. Today's labor market data showed US hiring cooled in July but there was a significant upward revision in prior from which many perceived as a steady labor market and it was not enough to discourage the Fed's hawkish stance.
The June trade balance widened to -$46.30 Billion from the prior revised of -$43.20 Billion although it still came in shy of -$46.50 Billion survey. The change in Nonfarm Payrolls printed a slightly disappointing number at 157k vs. 193k forecast and an upwardly revised prior of 248k. However, wages were still steady with both Average Hourly Earnings MoM and YoY coming in line with surveys at 0.30% and 2.70%, respectively. Unemployment rate ticked down to 3.90% as forecasted from 4.00% prior, and Underemployment also decreased to 7.50% from 7.80% prior.
The curve has bull-flattened with UST 10-Year yield down 2.42 bps.
Have A Nice Weekend!