Advanced Share Registry : Market News 7 June 2021

May's nonfarm payrolls rose by 559,000 in May, the Labor Department reported Friday, but the increase was (predictably) less than the 675,000 economists had predicted for the second month in a row now. Despite the combined willpower and firepower of the Federal Government and the Federal reserve bank behind it, supply constraints and labour shortages managed to deliver numbers well under expectations for a largely vaccinated American population. It's the second month in a row where new jobs expectations missed predictions. Unemployment has drifted from 6.1 per cent last month to 5.8%. Some call it a goldilocks scenario, though, as it missed predictions but was a solid improvement over Aprils 278,000 job additions. That keeps the Fed on its steady course with the cost of money near zero.

The leisure and hospitality industry saw hiring fall in May, though other sectors saw improvement. Service sector operations contributed 186 000 jobs, but the increases still leave the U.S. labour market 7.6 million jobs shy of pre-pandemic America. Markets rallied anyway as the so-so performance tapers talk of taper talk, despite inflation poking its head through, too. Average hourly earnings lifted 0.5% in May from April to $30.33. Cleveland Fed President Mester added her two cents worth when she said. 'We want to be very deliberately patient here because, you know, this was a huge, huge shock to the economy.'

Rising demand for labour linked to the pandemic recovery has placed upward pressure on wages, but 'bad' news is always welcomed by equities, and U.S. government bonds surged, bringing the benchmark 10-year note 0.06 percentage points lower to trade near 1.56 per cent. Cheap money applauded, and the Nasdaq easily outperforming its peers thought the S&P 500, closed less than 3 points below its May 7 record. The Dow ended 0.1% below its all-time high, with strong leads from Salesforce, Microsoft and Intel. Apple rose 1.9%. Pfizer and BioNTech had their Covid vaccine approved for 12 to 15-year-olds in the U.K, pushing the stocks up 0.5% and 8.4%, respectively. Facebook revealed former reality star Donald Trump would remain suspended from Facebook and Instagram until at least January 2023, lifting the stock by 1.3%.

Brent oil rose 1.6% to $71.35 a barrel with an intraday high that beat the January 2020s zenith despite OPEC+ sticking to a plan to increase supply through July. Energy prices rose 4%- last week. Markets also ignored U.S. factory orders falling 0.6%, which ended an 11-month growth streak as supply and labour shortages wreak havoc to surveyed economists who supposed a 0.2% decline. Orders for long-lasting, durable goods declined 1.3% in April, following a 1.3% gain in March.

Dow Jones	34756.39	+179.35	+0.5%
US S&P500	4229.89	+37.04	+0.9%
US Nasdaq	13814.49	+199.982	+1.5
UK FTSE	7069.04	+4.69	+0.1%
German Dax	15692.90	+60.23	+0.40%
Gold Futures ($US/oz)	1892.00	+18.70	+1.00%
Spot Iron Ore ($US/t)	208.35	-2.85	-1.3%

Europes Stoxx 600 capped a third straight weekly gain but ended the session a tad in the red as basic resources continued their retreat, falling 1.9%. President Biden amended a ban on U.S. investment in Chinese companies giving investors one year to fully divest though it's largely a continuation of a policy issued by Trump. He named 59 firms with ties to the country's military or in the surveillance industry, which include Chinas three largest telecommunications companies. The Caixin/Markit services PMI for May read 55.1, lower than Aprils 56.3 as their services activity growth slowing in May. Our futures are up 7 points after last week's gang busting 115.9-point gain for the S&P/ASX 200 Index to hit a new record high.

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