Dow gave back 70, advancers over decliners 2-1 & NAZ gained 17. The MLP index was off 1+ to 191 & the REIT index crawled higher in the 481s. Junk bond funds hardly budged & Treasuries saw some selling. Oil dropped 2+ to the 81s after its recent rally & gold sank 25 to 1763.
AMJ (Alerian MLP index tracking fund)
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US private-sector hiring accelerated in Oct as the impact of the COVID-19 delta variant waned & supplemental unemployment benefits expired. The
US economy added 571K private-sector jobs last month, up from a
downwardly revised 523K new jobs in Sep, according to the ADP
National Employment report. The forecast called for the addition of 400K jobs. "The job
market is revving back up as the Delta wave of the pandemic winds down,"
said Mark Zandi, chief economist at Moody's Analytics. "Job gains are
accelerating across all industries, and especially among large
companies." Workers continued to flood back into the service
sector following the Sep expiration of supplemental unemployment
benefits that paid an additional $300 per week. Firms added workers in
the services sector, led by gains in leisure & hospitality (+185K),
professional & business services (+88K) &, trade, transportation & utilities (+78K). The goods-producing sector added 113K workers with robust job gains in construction (+54K) & manufacturing (+53K). Job
gains picked up for both small- (+115K) & medium-sized (+114K)
businesses, but slowed for large-sized organizations (+342K).
Private-sector hiring picks up as workers pour into service jobs
The world's largest trade deal — which includes China & excludes the US — will come into force in Jan 2022. It comes as Australia & New Zealand announced they have ratified the agreement. The Regional Comprehensive Economic Partnership or RCEP was signed last year by 15 Asia-Pacific countries The countries are the 10 members of the Association of Southeast Asian Nations & 5 of their largest trading partners China, Japan, South Korea, Australia & New Zealand. Australia said that its ratification — together with New Zealand's — paved the way for the deal to enter into force on Jan 1, 2022, & allowed RCEP to reach a “milestone.” New Zealand confirmed its ratification in a separate statement. RCEP will be in force 60 days after a minimum of six ASEAN members & 3 non-ASEAN signatories ratify the agreement. RCEP covers a market of 2.2B people & $26.2T of global output. The partnership will create a trade grouping that covers about 30% of the world's population, as well as the global economy. It is also larger than other regional trading blocs such as the US-Mexico-Canada Agreement (USMCA) & the EU. Analysts have said that economic benefits of RCEP are modest & would take years to materialize. Still, the deal was widely seen as a geopolitical victory for China at a time when US economic influence in Asia-Pacific has waned.
World’s largest trade deal will come into force in January. The U.S. won’t be part of it
The Bank of England's Monetary Policy Committee will meet shortly to decide whether to pull the trigger on interest rate hikes. Policymakers have intimated that a hike is imminent, but the 9-member MPC will need to determine whether to tighten policy this week or wait until its mid-Dec meeting, in light of persistent above-trend inflation & moderating growth. Markets are uncertain about the timing, with analysts suggesting the vote is likely to be split. Some BOE policymakers, such as Governor Andrew Bailey & renowned hawk Michael Saunders, have hinted that they could back an immediate hike, while others have seemed more reluctant.
Bank of England could be about to hike rates in the face of surging inflation
The report on new hiring was helpful. But the main attention will be on what the Fed has to say later today.
Dow Jones Industrials
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