Max McKechnie, Global Market Strategist at J.P. Morgan Asset Management (JPMAM), has shared his thoughts on today’s labour market data.
“Today’s labour market data offers a chance to cut through the sentiment noise.
“Survey data has softened in recent weeks, with the February business surveys and consumer confidence releases pointing to rising concerns from both employers and employees. However, recently, sentiment has not been a particularly good guide to future activity.
“Investors will be keen for hard data to gauge how real the downside risks are, and there will be even more eyes than normal watching today’s jobs data. Payroll employment is expected to grow by 160 thousand jobs. This would be a healthy number and support our view, that for the moment, the US economy remains resilient in the face of building headwinds.
“Markets are concerned about the growth implications of US trade policy, and some investors, worried about the political direction, are starting to look to the Fed to step in and steady the ship. However, with inflation still stuck above target, today’s solid payrolls data is expected to confirm that, for now, there is no need for the Fed to act.”
