Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
American labor market is still tight
American labor markets were still tight due to the fact that US businesses struggled to gain skilled employees and wages rallied a bit, as the Fed reported on Wednesday in its latest report on the US economy.
According to the Fed’s so-called "Beige Book" report, a glimpse of the American economy built around conversations with business contacts across all 12 of the major bank’s districts, discovered that economic activity went up at a slight-to-moderate tempo in March as well as early April. Several districts posted some strengthening in economic surge.
Moreover, prices have tacked on a bit since the last Beige Book, with levies, freight costs as well as soaring wages often cited as major factors, the major bank told. The bank added that consumer spending turned out to be mixed, although suggested sluggish sales for both general retailers as well as auto dealers.
Aside from that, wages inched up a bit in most districts for both unskilled and skilled employees, with only three reporting moderate surge in employees’ pay, as the Federal Reserve told.
Companies in most districts posted shortages of skilled employees, mostly in construction and manufacturing, although in technical as well as professional roles. In fact, businesses have responded to the tight labor market by simply spurring bonuses as well as benefits packages, along with wages soaring a bit.
In terms of the manufacturing sector, the major US financial institution told that contacts in many US districts informed that trade-related uncertainty was putting pressure on activity.
As a matter of fact, the influence of the 35-day American government shutdown, which started in late December turned out to be muted.
The US Inflation Rate (CPI) will be released on Wednesday, November 10, at 15:30 MT (GMT+2).
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
ISM Manufacturing PMI will be announced at 17:00 MT (GMT+2) on Wednesday, December 1.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.