A blowout US jobs report has caused investors to further dial back their expectations for interest rate cuts and put even greater focus on next week’s inflation figures. Economists are also watching China’s fourth-quarter GDP numbers and the UK’s inflation and GDP data for signs of economic slowdown.
A strong US jobs report has dampened investor expectations for interest rate cuts by the Federal Reserve this year. The report showed that US employers added 256,000 new jobs in December, significantly exceeding economists' forecasts. This robust labor market performance has led to speculation that the Fed may hold off on easing monetary policy. Investors are now closely monitoring next week's inflation data, which is expected to show a slight increase.
Meanwhile, China is set to release its fourth-quarter GDP figures, which will provide insights into the country's economic outlook. Analysts predict a modest growth rate of 5.1 percent for the quarter, but concerns remain about the potential impact of a renewed trade war and the ongoing property market slowdown. In the UK, investors will be watching inflation and GDP data for signs of stagflation. Economists forecast inflation to remain steady at 2.6 percent in December, while GDP is expected to have grown by 0.2 percent.
ECONOMY INFLATION JOBS CHINA RATES
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dollar Rises to Two-Year High Amid Strong US Jobs DataThe US dollar reached a two-year high against the euro and an eight-month high against the British pound on Thursday, driven by robust US jobs market data. Investors are increasingly confident in the strength of the US economy, believing that resilient growth and inflation will limit the Federal Reserve's rate cuts this year, boosting demand for the dollar.
Read more »
Strong US Jobs Data Push Treasury Yields to 8-Month High, Rate Cut Expectations DwindleUS Treasury yields climbed to their highest level in eight months after impressive jobs and services data suggested the Federal Reserve might only lower interest rates once this year. Investors now anticipate a single quarter-point rate cut by July, with a reduced chance of further reductions.
Read more »
Oil Prices Surge on OPEC, Russia Output Cuts and Strong US Jobs DataCrude oil prices climbed higher today after reports revealed production cuts by OPEC and Russia in December, coupled with positive US employment figures indicating a robust economy. Both Brent crude and West Texas Intermediate traded above their opening prices, fueled by expectations of sustained demand. Analysts suggest that the rally might be temporary, with potential profit-taking and the looming threat of global economic headwinds.
Read more »
Biodiversity hit to economies estimated at up to $25tn a year in landmark reportEquivalent of one-quarter of global GDP lost annually, report by 165 scientists finds
Read more »
Treasury yields jump after US jobs report smashes expectationsBank of America says ‘gangbusters’ figures will dash hopes for further Federal Reserve rate cuts
Read more »
UK defence spending needs to rise to 3.6% of GDP to modernize military, MoD saysInternal Ministry of Defence calculations suggest the UK needs to spend 3.6% of GDP on defence to modernise its military, protect its nuclear deterrent and meet Nato obligations. This represents a 56% increase on current spending levels and is widely seen as unrealistic. While Sir Keir Starmer has pledged to raise spending to 2.5%, the 3.6% figure would bring UK spending closer to Poland's, which spends more than 4% of its GDP on defence. Without the increase, the UK may have to reduce military capabilities or headcount.
Read more »