Non-farm data falls short of expectations, market bets on rate hike delay to year-end

Odaily Planet Daily News: US June non-farm payroll data shows that despite a decline in the unemployment rate, hiring activity slowed significantly in June, curbing the momentum of job growth seen earlier this year. According to data released by the Bureau of Labor Statistics on Thursday, after downward revisions of 74,000 to the previous two months' data last month, non-farm payrolls increased by 57,000 in June (market expectation was 110,000).

The unemployment rate fell due to a sharp decline in the labor force participation rate—when the labor force participation rate falls, it means some people have left the labor force (e.g., stopped job hunting, retired early, returned to school). These individuals are no longer counted as "unemployed" and are no longer part of the "labor force," leading to a lower unemployment rate. Following the data release, spot gold briefly surged, and the market also reduced its bets on a Federal Reserve rate hike. The market has fully priced in expectations of a Fed rate hike in December, compared to a previous expectation of an October hike. (Jin Shi)