The U.S.'s June payroll data--with fewer jobs added than expected by analysts--supports Jefferies's view that the Federal Reserve won't hike interest rates this year, global economist Mohit Kumar says in a note. "[The] U.S. economy remains resilient but the payroll data is not hot enough to warrant a hike," he writes. Inflation data is likely to be more important than payroll data for Fed expectations in the coming months, he says. "But unless the inflation data surprises significantly to the upside, we see the payroll data giving a green light for our preferred trades over the coming weeks--long equities, long credit and long front-end rates." (emese.bartha@wsj.com)
Dow Jones Newswires
Latest U.S. Payrolls Data Likely Point to Unchanged Fed Rates This Year — Market Talk
The U.S.'s June payroll data--with fewer jobs added than expected by analysts--supports Jefferies's view that the Federal Reserve won't hike interest rates this year, global economist Mohit Kumar says in a note. "[The] U.S. economy remains resilient but the payroll data is not hot enough to warrant…