Monday, 4 June 2018

U.S. ECONOMY POWERS AHEAD

Signs of strength in the U.S. economy helped keep bears at bay. 

Data released on Friday showed U.S. job growth accelerated in May and the unemployment rate dropped to an 18-year low of 3.8 percent, indicating a rapidly tightening labour market.

The strong report added to a string of upbeat economic data, including consumer spending, industrial production and construction spending, making the Federal Reserve all but certain to raise interest rates at its policy meeting next week.

U.S. Treasury yields edged higher, with 10-year paper at 2.9076 percent, while the dollar eased 0.4 percent against its currency basket to 93.802.

U.S. crude futures traded lower at $65.40, back at their lowest levels in nearly two months. Rising U.S. crude production and a glut due to a lack of pipeline capacity have pressured prices.

Global benchmark Brent was down 1.3 percent at $75.76.

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