It is a mad, mad market interpreting everything as bullish and stopping in all and sundry. US jobs were excellent, which would have terrified the market six weeks ago:
Total nonfarm payroll employment increased by 339,000 in May, and the unemployment rate rose by 0.3 percentage point to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance.
…The change in total nonfarm payroll employment for March was revised up by 52,000, from +165,000 to +217,000, and the change for April was revised up by 41,000, from +253,000 to +294,000. With these revisions, employment in March and April combined is 93,000 higher than previously reported.
Wage growth is still motoring along well above 4% and strong enough to keep inflation above 5% but that is no problem for this bubble.
China added to it as well, even though the details of an alleged property stimulus make it look more like a pop gun than a bazooka.
This script writes itself:
The Fed has paused too early again and triggered another stock market melt-up.
The wealth effect will increase economic activity in due course, keeping inflation miles above target.
The Fed will panic and yields jackknife.
Until such a time as it all unravels. I’m talking weeks and months not quarters.
Unless the China stimulus is much greater than what has been leaked, while the AI bubble melts up the Australian dollar is going to melt down.
And then probably keep going down as panic selling sets in afterward.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
