U.S. private payrolls on the rise
Data released today in the United States showed that private payrolls rose by more than expected in June.
Ahead of this Friday’s Non-farm payrolls, Wednesday’s ADP figures gave markets a potential preview of what to expect this coming jobs day.
It was shown that private payrolls rose by 692,000 jobs this month, which easily surpassed analysts’ expectations of a 600,000 increase.
With over 150 million American’s now fully vaccinated against the coronavirus, many have begun to return to work, with businesses keen to employ staff in order to ramp up activity post COVID-19.
The sector which contributed the most to the private payroll increase was the Leisure and hospitality sectors, where close to 332,000 jobs were added.
As a result of the news, the blue chip Dow Jones index was trading 0.51% higher as of writing.
DAX 30 falls despite UK trade tensions easing
After months of disputes, the European Union and United Kingdom today reached an agreement to extend the grace period for the shipment of chilled meats into Northern Ireland.
The issue came as the exportation of chilled meats into Northern Ireland was said to be in violation of certain terms in the Brexit agreement.
However today, the EU agreed to grant the UK a further 3-months in order to find an alternative solution
Without the extension, these goods would not have been able to cross the Irish Sea due to an EU ban on such produce from countries outside the bloc, which now includes the UK.
Regarding the news, the UK’s Brexit minister Davis Frost today stated that, “The chilled meats issue is only one of a very large number of problems with the way the protocol is currently operating”.
As a result of the potential future uncertainty, both the DAX 30 and FTSE 100 closed the day in the red.
Didi shares rise as ride-hailing app IPO’s
On Wednesday, Chinese ride-hailing company Didi Chuxing made its trading debut on the New York Stock Exchange, listing under the ticker symbol $DIDI.
The company which had a pre-IPO valuation of $62 billion, saw its value rise to as much as $80 billion earlier today, as shares in the company rose by as much as 14%.
Many see the rise in the ride-hailer to come as a result of more people potentially heading towards private travel, in the aftermath of the coronavirus pandemic.
Uber and Lyft, who also operate in this space have recently stated that they expect to be profitable by the end of 2021, as a result of the increased demand.
However, after its rise earlier in today’s session, $DIDI gave up some of these earlier gains, and was trading around 12% lower as of writing.
Quote of the Day – “As much as possible you don’t want to be well paid merely for taking big risks. Anyone can manage that. You want to be well-paid because you did your homework.”– Joel Greenblat
Senior Market Analyst