Friday preview: US non-farm payrolls, China foreign trade data

Investors' focus at the end of the week will be squarely on the US non-farm payrolls report for the month of May.

Will the figures validate a few economists' expectations for more pronounced softness in hiring or will the jobs data continue to reflect robust net hiring condition?

Consensus was for a 185,000 person increase in hiring, which would be just a tad higher than April's print of 175,000.

The annual rate of increase in average annual earnings meanwhile was expected to be steady at 3.9%.

On the dovish side of things, MUFG's Lee Hardman noted the low average reading for the employment subindex in the ISM's services sector survey over the last two months.

"Over the last two months the employment sub-component has averaged only 46.5 which is the lowest reading over a two month period since August 2020," he said.

"It supports our cautious outlook for the US labour market and will leave market participants wary of the risk of a softer NFP report on Friday."

Economists at Oxford Economics on the other hand were anticipating a reading of 205,000, as May registered seasonably normal weather, as opposed to April's higher than usual rainfall.

Nonetheless, in a research note sent to clients, he went on to say: "Even if our forecast is correct, trend job growth is slowing, but the Federal Reserve will want the deceleration to remain orderly."

Against that backdrop, overnight China's customs administration was scheduled to release foreign trade numbers for the month of May.

They would be followed at 0600 BST by a reading on German industrial production in April.

In turn, that data would come out alongside mortgage lender Halifax's monthly UK house price survey.

Friday 07 June

INTERIM DIVIDEND PAYMENT DATE

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INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Consumer Credit (US) (20:00)

Gross Domestic Product (EU) (10:00)

Industrial Production (GER) (07:00)

Non-Farm Payrolls (US) (13:30)

Unemployment Rate (US) (13:30)

Wholesales Inventories (US) (15:00)

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