US jobs and inflation
In the US, the number of Americans filing claims for unemployment benefits fell last week, supporting economists’ views that the labour market remained in a “slow-hire, slow-fire” mode, despite a sharp slowdown in job growth in June.
Minutes of the Federal Reserve’s June 16 to 17 meeting showed policymakers’ concerns about inflation mounted last month and they, “generally expected labour market conditions to remain stable in the near term, with the unemployment rate staying close to current levels.”
New York Federal Reserve President John Williams said on Thursday he did not expect a sustained rise in energy prices for the rest of the year despite the resumption of hostilities in the Middle East, and declined to say what decision he would make on interest rates at a policy meeting later this month. When the Fed boosts interest rates to keep inflation in check, it can reduce economic growth and cut demand for oil.
In China, the world’s second-biggest economy behind the US, producer price inflation surged in June to its highest level in four years, piling pressure on manufacturers’ profit margins as weak domestic demand limited pricing power.
China and Taiwan, meanwhile, were bracing for a tropical storm that could be the most destructive in years as Typhoon Bavi churned southeast of Taiwan on Thursday, with winds near 200 kph (124 mph). Parts of China were still reeling from Typhoon Maysak.