The October jobs report continued to show a robust labor market with 250,000 jobs added to the economy and an unemployment rate holding at a near five decade low of 3.7%. The low unemployment figure helped push wage growth higher; all points are seen to add conviction to the Feds plan for steady interest rate increases. President Trump mentioned this week that progress had been made toward a trade deal with China. This news comes on the back of the Justice Department accusing a Chinese state-owned chip maker of stealing trade secrets. Intellectual property protections are expected to remain a key point in President Trumps’ discussions with China.
Risk assets had a welcome week after October’s bloodbath. The U.S. large company stock index advanced for three straight days before turning negative on Friday; it along with international developed and emerging market equities had sizeable gains reprieving some previous declines. Third quarter earnings are still in focus as Apple’s results pushed indices lower on Friday and dropped the world’s most valuable company below $1 trillion briefly. The company lowered guidance ahead of the holiday season and will stop reporting unit sales for the iPhone, iPad and Mac.
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