Today’s US employment data shows that unsustainable growth is moderating: 315k jobs created (318k expected)
- Unemployment rate moves up 2 ticks to 3.7% (labour force rose by 800k as more people have decided to look for work)
- Monthly wage growth is a touch softer at 0.3% vs 0.4% expected
Today’s data does little to change the consensus view of a 75bps rate hike by the Federal Reserve in September.
Equity, rate and credit markets, which had sold off ahead of the data, are probably due for a mild relief rally.