US vacancies reduce bets on Fed rate cuts
On Tuesday, US labor market data tempered expectations of a Fed rate cut in November by 50 basis points.
According to the JOLTs report, vacancies increased from 7.711 million in July to 8.040 million in August. More job openings could lower unemployment and potentially boost wage growth and consumer spending. An increase in consumer spending could support the US economy as it contributes over 60% to GDP.
Moreover, the Fed could reduce the need for aggressive rate cuts if inflation cools but the labor market remains tight.
Expert views on the US jobs report
Arch Capital Chief Global Economist Parker Ross offered a cautious view of the JOLTs report: comment:
“The August Job Openings and Labor Turnover Survey (JOLTS) showed that the multi-year slowdown in the labor market continued. While the pace of hiring typically increases during expansions, this cycle is instead driven by separations (i.e. layoffs, retirements, etc.) that are slowing, in addition to a slower pace of hiring since early 2022.“
Aussie Ai Group industry index rises modestly
On Wednesday, October 2, economic data from Australia supported demand for shares listed on the ASX 200. The Industry index of the Ai Group rose from -23.5 in August to -18.6 in September, missing expectations of a jump to -10.0. The report revealed slight improvements in employment, new orders and activity/sales, while input prices remained high.