The Day at a Glance | November 4 2022

The Top

*Job employment creation exceeded expectations in the US, but the unemployment rate increased to 3.7%.

*Katherine Tai, US Trade Representative, wishes to advance rapidly with solving the energy sector issue with Mexico.

*Inflation for producers in Europe became more moderate (41.9% annual, Sep.).

*G7 agreed to set oil price caps on the Russian commodity.

*Rumors of China`s reopening boosted financial markets in the country.

*North Korea launched artillery and flights close to South Korea; US called for cooperation.

Economic environment

Firm labor market. US labor market figures confirmed that the market`s strength continues after logging 261 thousand new jobs in October. The data set above estimates (200k) and September`s figures were revised upwards to 315 thousand. Gains in employment were widespread, although the most benefited sectors were the health sector, and professional and manufacturing services. The report suggests that demand for workers remained strong throughout October despite aggressive interest rate increases on behalf of the FED. This has boosted wages, which increased 0.4% monthly (vs 0.3%e.), although they remained stable at an annual 4.7% pace. Nevertheless, job creation has continued being more moderate on a monthly basis and logged its lowest level since January of 2022, while the unemployment rate increased to 3.7%. Markets have not absorbed the news badly as expectations of a notable slowdown in various sectors of the economy will eventually translate into a less buoyant labor market.