The Dow Jones Industrial fell yesterday initially below the mark of 34,000 points, but then recovered and closed +0.3% higher at 34,416.99 points. The broad S&P 500 rose +0.48% to 4,363.55 points and the Nasdaq 100 recorded a daily gain of +0.63%. Optimism was provided by the announcement of Mitch McConnell, the leader of the Republicans in the Senate, not to block an extension of the debt ceiling until December. Sentiment was also supported by stronger-than-expected US jobs data from ADP (Automatic Data Processing) and news that US President Joe Biden and China's leader Xi Jinping plan a virtual meeting in the coming weeks.
In the United States, private sector employment performed better than expected in September. According to labor market service provider ADP, 568,000 new jobs were created last month, up from 340,000 in August. Analysts had expected an average gain of 425,000 jobs. Although job growth slowed from the second quarter, the labor market recovery continues, according to ADP. The monthly report is based on a survey of about 460,000 US companies with about 26 million employees and is considered an indicator for the official labor market report due Friday.
According to estimates by the International Monetary Fund (IMF), the sharp rise in inflationary pressure will ease by mid-2022 and return to pre-corona crisis levels. According to the IMF's latest World Economic Report, inflation in the advanced economies is expected to peak at +3.6% at the end of 2021 and fall back to +2% in the first half of 2022. In emerging economies, the IMF expects inflation to peak on average at +6.8% and then decline to +4%.
The Reserve Bank of New Zealand raised its key interest rate by a quarter of a percentage point to +0.5%. The first rate hike since 2014 is the central bank's response to rising inflationary pressures. According to the central bank, the inflation rate could rise to 4% in the short term. Accordingly, the central bank signaled that it would tighten interest rates further if necessary. However, the interest rate move had been expected on the capital markets.
After a strong increase in orders in recent months, German industry reported a sharp decline in August. Over the year, orders fell by -7.7%, which according to the Federal Statistical Office in Wiesbaden was mainly due to a lack of major orders (e.g. for aircraft, ships or trains). However, even without this component, orders fell by around -5%. The industry is being hampered by continuing supply bottlenecks for important parts and raw materials.
|07:45||SZ||Unemployment Rate (September)||2.9%|
|08:00||GE||Industrial Production (August, m/m)||+1.0%|
|14:30||US||Initial Jobless Claims (weekly)||362,000|
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