A comprehensive slowdown in employment is expected

Following the rise of US stock markets led by artificial intelligence companies, the effect of the Japanese yen is being observed in the Asia-Pacific region. After Google introduced its new artificial intelligence model, Gemini, Alphabet shares gained over 5 percent, leading the Nasdaq 100 to close Thursday up 1.4 percent. US stock futures are trading flat.

The appreciation of the Japanese yen is causing a sharp decline in the shares of export companies. The Nikkei 225 diverged negatively in the Asia-Pacific region. The Hong Kong Hang Seng and mainland Chinese indices recorded moderate gains.

The Bloomberg Dollar Index is at 1,239 points with a 0.1 percent loss ahead of the employment data.

The US 10-year bond yield rose by two basis points to 4.16 percent.

Oil, for which the OPEC+ supply cut decision did not stop the price decline, is preparing for its longest weekly losing streak since 2018.

WHAT IS EXPECTED IN THE US NON-FARM PAYROLLS DATA?

The US non-farm payrolls data, which could provide important clues about the Fed's interest rate path, will be released at 16:30.

The median expectation of economists participating in the Bloomberg survey is that the American economy created 183 thousand net non-farm jobs in November. This level points to an increase from the 150 thousand jobs in October.

According to Bloomberg Economics, a one-time effect due to the resolution of the automotive workers' strike may play a role in the increase in employment. Expecting to see a slowdown in the labor market in the details of the data,

Bloomberg Economics US Chief Economist Anna Wong assessed, "It is becoming increasingly difficult for job seekers to find new jobs. The lengthening of the duration of unemployment is also leading to an increase in the unemployment rate."

While the unemployment rate is estimated to remain at 3.9 percent in the survey, Bloomberg economists expect the unemployment rate to rise to 4 percent. Examining sub-sector data, Bloomberg economists stated that the share of sectors increasing employment has declined from its peak of 77 percent in February 2022 to 56 percent. Economists expect a decline in this rate along with the slowdown in the economy.

News Source: 12punto