
Why strong jobs data would be bad news for US equity valuations?
Rally in most major indices across Europe and the US paused yesterday, as Trump-driven optimism began to sour under the rocky glare of the summer sun.
To top it off, yesterday’s US data did little to support those betting on an imminent Federal Reserve (Fed) rate cut. Most FOMC members still argue that cutting rates now would be a mistake, particularly as they expect inflation to rise due to tariffs in the coming months, and the labour market remains robust enough to wait. In fact, US job openings unexpectedly rose in May, the ISM Manufacturing Index showed slower contraction, and...