UBS On-Air: Market Moves Top of the Morning: The week in review and preview
Jun 6, 2025
This week, experts dive into the latest jobs numbers, revealing insights into the US labor market's health. They discuss the mixed results from the May Employment Report and the implications of key economic indicators. There's a spotlight on the Fed’s Beige Book, shedding light on economic trends. Finally, listeners get a sneak peek at upcoming market developments to watch for in the week ahead.
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US Labor Market Cooling Gradually
- The May Employment Report showed mixed signals with payrolls still growing above expectations but slowing, and unemployment steady at 4.2%.
- Labor market is cooling gradually but demand for workers remains solid, supported by other labor data like JOLTS and jobless claims.
Mixed Global Economic Data Impact
- Weekly economic data including ISM manufacturing and services PMIs were disappointing and below expectations, especially in services.
- Eurozone inflation dipped below 2%, prompting further ECB rate cuts, while the Fed remains data dependent amid resilient US economy and trade uncertainties.
Beige Book Shows Uncertainty Growth
- The Fed's Beige Book showed increased economic and policy uncertainty, with businesses hesitating on spending and hiring due to tariffs.
- Companies face rising costs and are split on passing them to consumers or cutting margins, signaling caution despite still moderate inflation and resilient labor market.