Weekly Market Recap
Week in review
- Australian unemployment rate rises to 7.1%
- Chinese retail sales better than expected at -2.8% y/y
- U.S. retail sales jumps by record 17.7%m/m
- Global PMI manufacturing surveys
- RBNZ official cash rate decision
- U.S. durable goods
Thought of the week
Australia lost a further 228,000 jobs in May, bringing the cumulative total loss since February to 838,000 and employment growth in Australia languishing at -5.4%y/y. The headline rate of unemployment rose to 7.1%. This number understates the true unemployment rate given the masking effect of the JobKeeper scheme and those that have stopped looking for jobs. 142,000 people left the labour force in May. Even with the mixed messages in last week’s labour market report the trend is clear. The unemployment rate has not yet reached its peak. The inevitable changes to the JobKeeper and JobSeeker programs and the return of many workers to the labour force will see the unemployment rate continue to rise as we head through the third quarter.
Employment in Australia
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.