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.

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