Jobs Day | WTI Gains on Saudi Production Cut Commitments
Published June 7, 2019
US businesses added the fewest workers in three months as today’s job report reflected significantly cooled wage gains. An immediate drop in the greenback signals broader economic weakness and has boosted calls for a Federal Reserve interest-rate cut. Payrolls rose 75,000 after a revision from a 224,000 advance the prior month, according to Labor Department data.
People’s Bank of China Governor Yi Gang said his country has ample monetary and fiscal policy space to make modifications to the Chinese economy should the trade war worsen. He continued by stating that his meeting this weekend with US Treasury Secretary Mnuchin would be productive. The offshore yuan fell the most in three weeks off of the governor’s comments.
Negotiations between the US and Mexico are set to continue into a third day in a bid to reach an agreement that would stop the imposition of 5% tariffs on American imports from its southern neighbour on Monday. Mexican Foreign Minister Marcelo Ebrard confirmed that his government has offered to send about 6,000 national guard troops to Mexico’s southern border with Guatemala to help stem migration.
A barrel of West Texas Intermediate was trading at $53.20 this morning, as Saudi Arabia and Russia reiterated their commitment to work together to keep the global market balanced. Saudi Arabia’s top oil official said he was certain that OPEC and its allies would agree to extend production cuts into the second half of the year.