Financial Markets Gear Up for Central Bank Decisions

Central Bank Week

Central banks around the world are set to meet throughout the week, and while there are clear expectations for upcoming bank policy steps, investors will be closely monitoring the forward-looking guidance and statements released afterwards.

 

 

Labor Data Cools Though No Need for Concern

The Labor Department’s JOLTS report headlined an otherwise light day of economic releases.  Job openings during October fell from near record highs to 5.996 million, missing expectations of 6.1 million, albeit still within levels associated with a healthy labor market, while the number of hirings increased 4.4% to 5.552 million.  Openings in construction and real estate displayed the greatest increases, as the regions negatively impacted by this summer’s hurricanes begin the re-building process.  Also detailed in the report, the quits rate, an often-referenced measure of confidence in the jobs market, rose a steady 2.2% for the second consecutive month as 3.18 million Americans quit their job during October.

 

 

Both US equity and Treasury prices held within tight ranges during today’s trading session.  All three major stock indices increased 0.2%-0.5% on the day, driven by gains in the technology sector.  Yields/swap rates climbed 1-3 across the curve, bringing the yield on the 10-year note near 2.39%.  In commodities, crude oil futures climbed 1.1% while gold fell 0.5%.