The U.S. initial unemployment claims data will probably dominate discussion, as they showed a 32,000 surge to 637,000 in the May 9 week, reflecting increases related to auto industry layoffs, a Labor Department economist said.
This might indicate the start of a second wave of layoffs that will weaken incomes and spending ahead. Claims averaged 638,000 in April, so this represents a retracement of “green shoots” in the labor market.
Continuing claims jumped 202,000 to 6.560 million for the May 2 period, showing jobs were not found.
— Market News International
