Although
employees may not like the 0.1% rise in average hourly earnings, employers
liked it and markets loved it. This is simply because the modest increase in
wage growth indicates that the Federal Reserve will continue to have some sort
of slack in the labour market to deal with and thus keep the Fed on course for
three rate hikes in 2018 instead of four. After all, the combination of robust
economic data and limited inflation has been a key factor in keeping the bull market
alive.
The
NASDAQ Composite Index climbed to a fresh record after the release of Friday’s
jobs report. The S&P 500 is 10% higher from the trough recorded on 9
February, and fixed income markets aren’t showing any signs of anxiety, with
U.S. 10-year bonds yields remaining well below the 3% critical level.
Appetite
for risk spread to Asian markets today with the Nikkei 225, Hang Seng and Kospi
all advancing more than 1%. Futures also indicate a positive start to Europe
today.
Other
factors that boosted appetite for risk last week were Mr. Trump’s acceptance of
a meeting with North Korea’s Kim Jong Un,
though we didn’t see it as a game changer for equity investors. News that the
U.S. has opened the way for more exemptions from its steel and aluminium tariffs
on Friday may have indicated that we’re still far from an all-out trade war.
However,
it seems now that Trump’s target is not Canada, nor Mexico or the E.U., but
China. China’s Minister of Commerce, Zhong
Shan, said China does not want a trade war and will not initiate one, but
warned that any trade war with the U.S. would only bring disaster to the world
economy.
This
week, U.S. economic data will be closely scrutinized, particularly February’s
CPI report, as it’s just a few days before next week’s Federal Reserve meeting.
Consumer price are expected to have cooled down last month after surging 0.5%
in January, but the headline CPI is still forecasted to rise 2.2% YOY, from
2.1%.
Investors
are likely to give more attention to the core CPI, and if it remained steady at
1.8% there would be no reason to think that the Fed will take an aggressive
stance when it meets.
Retail
sales are expected to rebound after falling for two consecutive months. If they
met the anticipated 0.3% rise, this may suggest that the tax cuts are finally
encouraging consumers to save less and spend more.
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will tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
Have you heard
this? Many Nigerian exporters have been defrauded of huge amount of money in
the process of exporting commodities to foreign countries. Do you know why? They
were not trained on export operations, management, documentations and the best
methods of payment in export trade. This is terrible!!! Nigerians cannot
continue to lose money to foreigners in the course of export business.
Exporters, why don’t you get a practical manual that teaches the stages of
export trade from processing and packaging of commodities to receipt of payment
by the foreign buyers. It teaches export operations, export management, export
documentations and methods of payment in export trade? It is a contemporary
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