United States: The job openings report provided further confirmation of the tightening labor market. Vacancies blew past market expectations.
The Beveridge curve has turned up, suggesting that many unemployed workers are not ready to return.
United Kingdom: GBP/USD has been sensitive to yield moves.
Asia-Pacific: Will Australia lose its AAA rating as the fiscal situation deteriorates? CBA assigns a substantial probability to this outcome.
Separately, Australian exports have been heavily dependent on iron ore.
Commodities: China’s commodity exchanges have been trying to cool iron ore and steel prices but haven’t succeeded.
Equities: In the late 1990s, it took several rate hikes to pop the Nasdaq bubble. There were several corrections on the way to the peak.
Food For Thought: The role of governments in basic research:
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com