【U.S. Initial Jobless Claims Surge to 8-Month High】
For the week ending May 31, initial jobless claims in the U.S. increased by 8,000 to 247,000, exceeding market expectations of 235,000, reaching the highest level since October of last year, indicating a continued cooling in the labor market.
The four-week average rose to 235,000 (also a new high since October of last year), and while continuing claims for unemployment benefits decreased slightly, they remain elevated, suggesting increasing difficulty for the unemployed to find re-employment.
Recent data and surveys indicate that U.S. economic activity is slowing down, and if initial claims continue to rise, it may signal an expanding wave of layoffs.
【European Central Bank Cuts Deposit Rate by 25 Basis Points to 2%, Marking the Eighth Rate Cut in the Past Year, in Line with Market Expectations.】
This rate cut is due to inflation in the Eurozone falling below 2% and the economy being impacted by U.S. tariffs. The European Central Bank emphasized that monetary policy will be adjusted dynamically based on data and will not lock in the interest rate path in advance.
Current inflation is close to the European Central Bank's medium-term target of 2%, and the latest quarterly forecast shows that inflation expectations for 2026 are at 1.6%, below the target level, and next year's economic growth expectations have also been slightly revised down.
Following the announcement, the money market slightly raised its expectations for rate cuts this year to 33 basis points, and the euro strengthened against the dollar.