The US economy has seen a slowdown in job growth, with private employers adding 44,000 workers last month, according to ADP figures. This is a decrease from the 95,000 jobs added in June. Despite this, the US labor market remains strong, with the unemployment rate expected to remain at 4.2%.
Energy Markets
Energy markets have seen significant fluctuations, with crude prices rising above $80 a barrel after Yemen’s Iran-aligned Houthis attacked Saudi Arabia. However, the prospect of a US-Iran deal has pushed prices down. The global energy system is fragile, with inventories depleted and conflict expanding beyond the Strait of Hormuz.
Oil majors such as Exxon, Chevron, and BP have reported strong refining profits, driven by the shortage in refining capacity. However, this ‘golden era’ is unlikely to last, as the long-term fundamentals in the refining sector remain unsupportive.
Market Recap
Tech earnings have been a major focus, with SpaceX and AMD failing to impress investors despite revenue beats. The prospect of another interim US-Iran deal has also impacted markets, with crude prices falling. The US-Japan FX intervention has calmed markets, but concerns remain about the underlying issues in Japan’s economy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
