Jobs Data Released
July Non-farm payrolls came in as expected at 164,000 jobs, a number that represents a slowing pace versus June’s 224,000. The unemployment report printed at 3.7%, remaining at near 50-year lows. The underlying details of household employment were robust, registering 283,000, and the participation rate ticked up to 63%.
Average hourly earnings also increased 0.3%, taking the year-over-year household earnings number to 3.2%. This is significant as the Fed pays very close attention to wage inflation, which has been lagging lately.
Global Equities Down On Tariff News
Global equities continue to be weighted down by tariff-related angst as Asian equities sold off by nearly 2%. European markets took their cue from Asia, selling off as much as 3.6% in the case of the DAX. The three major domestic stock indexes were off over 1% this morning.
Various Chinese “sourced” comments have indicated that the Beijing is preparing retaliatory tariffs. As one unnamed source said per the Global Times, “China regrets this new, unreliable behavior.”