Weekly Market Recap
Week in review
- Unemployment rate rose to 7.0% in October
- Policy minutes set out dovish stance of RBA
- Preliminary retail sales rise 1.6% m/m for October
- Eurozone composite PMI
- U.S. composite PMI
- Australia capital expenditure for 3Q
Thought of the week
Australia is gaining some favourable tailwinds. Last week the positive news came from the labour market. Even as the unemployment rate ticked up from 6.9% to 7.0%, this was due to more workers returning to the labour market rather than a fall in the number of employed. In fact, employment increased by 178,000 compared to an expectation of close to a 30,000 decline. This sets up a good outlook for the final three months of the year, as much of the employment has returned sooner than expected. There was also positive news when it came to the number of hours worked, which increased over the month. This labour market metric has gained importance as a measure of spare capacity in the labour market, given many workers were still considered employed but on zero hours during the pandemic. However, the unemployment rate is likely to rise in the coming months as the impact of government subsidies fades from the data. Nor does this one report change the long road back to pre-pandemic levels of economic activity.
Employment and hours worked
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.