Weak U.S. employment report raises red flag on economy

U.S. job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labor market, which could put pressure on the Federal Reserve to cut interest rates this year.

The broad cool-off in hiring reported by the Labor Department on Friday was before a recent escalation in trade tensions between the United States and two of its major trading partners, China and Mexico. Analysts have warned the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.

Adding a sting to the closely watched employment report, far fewer jobs were created in March and April than previously reported, indicating that hiring had shifted into a lower gear. The labor market thus far has been largely resilient to the trade war with China. Read More@ https://www.reuters.com/article/us-usa-economy/weak-u-s-employment-report-raises-red-flag-on-economy-idUSKCN1T8086?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29

TECHNICAL CHART – WEEKLY PERFORMANCE

PSEi higher, peso weaker as trading week closes

MANILA – The Philippine Stock Exchange index (PSEi) managed to end the week up amid risk aversion by investors but the peso went back to the 52-level in the wake of international trade issues. PSEi ended the week up 0.30 percent, or 24.12 points, to 7,983.98 points. BPI Research said the main gauge was weak in the morning session but recovered in the afternoon, and finished the day on a high note. The improvement was attributed to the statement of People’s Bank of China (PBOC) Governor Yi Gang that they have a huge room to adjust monetary policy should the US-China trade differences worsens. All Shares also finished on positive note after a 0.12 percent, or 5.92 points, to 4,890.79 points. It was a balance between the sectors after Financials, Services, and Holding Firms rose 0.82 percent, 0.37 percent, and 0.25 percent, respectively. Mining and Oil, on the other hand, declined by 0.55 percent, Industrial by 0.12 percent, and Property by 0.05 percent. Volume reached 801.2 million shares amounting to PHP4.2 billion shares. Gainers led losers as 103 to 86 while 48 shares were unchanged. The local currency weakened to 52.04 from 51.74 finish Thursday. BPI Research likewise attributed this to the statement of the PBOC Governor. For the day, the peso opened the day at 51.68, a tad better than the 51.76 a day ago. It traded between 51.66 and 52.04, resulting to an average of 51.758. Volume amounted to USD983.99 million, higher than the USD714.4 million in the previous session. The currency pair is seen to trade between 51.80 and 52.20 on Monday. (PNA)

PSEi TECHNICAL CHART – >8000 OUR EXPECTATION 

Oil Optimism Slumps to 12-Week Low as Price Dips to Bear Market – US & CHINA TRAE WAR INTENSIFIES…WE STARE AT USDCNH PAIR…

Hedge funds kept running away from oil as prices tumbled into a bear market. They cut bets on West Texas Intermediate crude’s rally to the lowest levelin 12 weeks, according to data released Friday. Optimism on Brent crude, the global benchmark, declined by the most this year. WTI reached bear territory on Wednesday, dropping more than 20% from its April high amid escalating disputes between the U.S. and its trading partners. Prices rebounded toward the end of the week as Saudi Arabia and Russia reiterated their commitment to supply cuts, leaving it unclear whether investors had made the right call. The zeitgeist of the oil market is that it wants to track the broader macro environment,” said Tamar Essner, Nasdaq’s director of energy & utilities. “A lot hinges on what the outlook for the global economy looks like, which really hinges on a trade deal.” Read More @ https://www.bloomberg.com//news/articles/2019-06-07/oil-optimism-slumps-to-12-week-low-as-price-dips-to-bear-market?srnd=markets-vp

Trade War Has Cost 1% in Terms of Global Growth, Gurria Says

Want the lowdown on European markets?  Trade tensions have cost the world close to 1 percentage point in terms of growth, according to Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development. “It’s gotten very bad,” Gurria said in an interview with Bloomberg Television’s Kathleen Hays in Fukuoka, Japan, on Friday, referring to the uncertainty created by trade tensions. “Uncertainty is the enemy of growth.” The global growth outlook is worsening as the U.S.-China trade war escalates and President Donald Trump threatens countries like Mexico with higher tariffs. The OECD last month cut its global growth forecast to 3.2% for 2019 from 3.9% seen previously. Read More @ https://www.bloomberg.com//news/articles/2019-06-07/trade-war-uncertainty-is-enemy-of-global-growth-gurria-says?srnd=markets-vp

TECHNICAL CHART – USDCNH

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