Market comment - UK labour market data still confounding dour surveys

Davy Research
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The equity market rally early this week petered out on Tuesday (June 11th) as investors’ focus returned to US/China tensions ahead of planned talks at this month’s G20 meetings on June 28th/29th. Meanwhile, US PPI inflation slowed ahead of today’s US CPI inflation data. Sterling benefited from resilient UK labour market data. Although jobs growth slowed to 0.1% over the past three months, this is stronger than the dour picture painted by Purchasing Manager Index (PMI) and Recruitment & Employment Confederation (REC) surveys.