![]() ![]() MORE KEY EVENTS (30 MAY - 3 JUNE): Monday 30 May UK lending (April) An acceleration in wage growth could strengthen the Fed’s case for aggressive interest rate hikes, while a slowdown could see some of the urgency come out of the tightening timeline. Hourly earnings is one figure to keep an eye on. ![]() Job creation could slow to 350,000, while unemployment is predicted to fall to 3.5%, but neither of these outcomes would radically alter the overall picture of the labour market. These trends are expected to continue in the May report. Average hourly earnings grew 5.5% in the year to April, steady compared to the March figure of 5.6%. This equates to roughly two job openings for every unemployed person, a ratio which is making it harder for employers to fill roles and contributing to higher wages. The labour force participation rate fell to 62.2% from 62.4% in March, while unemployment remained steady at 3.6% despite 11.5m job vacancies. That said, the jobs report for April report wasn’t all good news. The labour market has added more than 400,000 non-farm payrolls in each of the last 12 months, highlighting the economy’s underlying strength despite a sharp contraction in economic output in Q1. The US economy added 428,000 jobs in April, matching the downwardly revised figure of 428,000 new jobs in March and beating expectations for 391,000 jobs. However, continued supply chain disruptions and rising costs have cast doubt over whether expectations will be met. That range encompasses market consensus, which currently sits at $1.05 a share. HP also said it was pulling out of Russia, although it did offer an optimistic outlook, upgrading its full-year guidance to $4.28 a share.įor Q2, profit guidance was between $1.02 and $1.08 a share. Printing sales were slightly disappointing, falling by 23%. HP has been looking to acquire new businesses after agreeing to buy audio and video accessories maker Poly for $1.7bn.Īt its most recent trading update HP recorded net sales of $17bn, with $12.2bn of that coming from sales of personal systems, which includes laptops and PCs. Wednesday – HP Q2 resultsĪ surge in PC sales over the past couple of years helped Hewlett-Packard shares rise to a record high in April, when it was revealed that Warren Buffett had taken a $4.2bn stake in the business. With the Fed likely to implement another half-point rate rise in June, the Bank of Canada is expected to make a similar move, with some suggestion that it could opt for a 75-basis-point hike to lift rates closer to what economists consider neutral territory. With unemployment having fallen to 5.2% in April, the Bank of Canada may feel emboldened to raise interest rates further at its upcoming meeting. These moves were expected as the bank’s counterpart south of the border, the US Federal Reserve, was set to raise rates by a similar amount in early May, with inflation showing little sign of abating.Ĭanada’s consumer price index increased 6.8% in the year to April – the country’s highest level of inflation since 1990. The central bank also announced that it would stop purchasing government bonds from 25 April in order to reduce the size of its balance sheet. OUR TOP THREE EVENTS FOR 30 MAY - 3 JUNE: Wednesday – Bank of Canada interest rate decisionĪfter procrastinating on interest rates in Q1, the Bank of Canada finally bit the bullet in April and raised its headline interest rate to 1% from 0.5% in a bid to curb surging inflation. In a relatively quiet week for corporate earnings, look out for updates from B&M, Hewlett-Packard, and Dr Martens. UK markets will be closed on Thursday and Friday to mark the Queen’s platinum jubilee. ![]() Friday’s US jobs report is expected to show that 350,000 non-farm payrolls were added in May, supporting the Fed’s plans for further interest rate hikes to tame inflation.
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