Stocks Notch All-time High After Weak Jobs Data

Stocks climbed to a record after surprisingly weak jobs data eased fears about higher inflation and a cutback in stimulus. The dollar slumped, while Treasuries were little changed. The S&P 500 rose by 0.74% to 4,232.60 while Dow Jones was up 229.23 points (0.66%) to 34,777.76.

US Job Growth Disappoints in Challenge to Economic Recovery

US job growth significantly undershot forecasts in April, suggesting that difficulty attracting workers is slowing momentum in the labor market and challenging the economic recovery. Payrolls rose 266,000 from a month earlier, according to Labor Department report that represented one of the largest downside misses on record. The unemployment rate edged up to 6.1%, though the labor-force participation rate also increased.

Lockdowns Bring Canada’s Job-market Recovery to Temporary Halt

Canada’s job recovery hit a snag in April as a third wave of lockdowns and Covid-19 restrictions led to fresh employment losses. The country shed 207,100 jobs last month, partially erasing large gains over the previous two months. The unemployment rate rose to 8.1% in April, from 7.5% a month earlier. The rate was below 6% before the pandemic.

France Wants to Restructure Small Firms’ Debts With New Tool

France plans to restructure the debts of small firms using a new mechanism, as it seeks to limit the lasting damage wrought upon the economy by the Covid-19 pandemic. Finance Minister Le Maire will present a tool in coming weeks for identifying companies that are viable in the longer term, but face short term problems that may require debts to be restructured. He cited the aircraft industry as a sector might benefit from the aid.

Japan Seeks to Extend Virus Emergency Covering Tokyo to May 31

Japanese Prime Minister Yoshihide Suga extended a state of emergency that covers Tokyo and expanded it to two more regions hit by rising virus cases, in an attempt to stem infections ahead of the capital’s hosting of the Olympics in less than three months. The expanded measure would cover about 40% of the economy and most major urban areas, increasing the risk of triggering a double-dip recession.

China’s Trade Surges as Global Stimulus Keeps Export Boom Going

China’s exports rose more than expected in April, suggesting its trade out-performance could last longer than expected this year, fueled by global fiscal stimulus. Exports grew 32.3% in dollar terms in April from a year earlier. Imports climbed 43.1%, a sign of strong domestic demand and soaring commodity prices, resulting in a bigger-than expected trade surplus of US$42.85 billion for the month.

Taiwan Central Banker Says Currency Policy Faces ‘turning Point’

Foreign demand for a slice of Taiwan’s increasingly profitable companies is threatening to upend the central bank’s decades-old currency management policy. Central bank board member Chang Chien-yi told that the institution won’t be able to fight currency appreciation if the Taiwan dollar rises on economic fundamentals as the competitiveness of local industries improves.

Oil Posts Weekly Gain on Expectations for Stronger Summer Demand

Oil posted a gain this week as expectations for growing economic activity in nations from the US to Europe fueled optimism around stronger summer demand. Brent crude for July settlement rose US$0.19 to US$68.28 per barrel.

Source: Affin Hwang Research - 10 May 2021