Global markets remain uncertain as the week progresses having traded higher compared to multi-year lows witnessed last week. For instance, Gold has hit highs of $1644 in the week.
The US labour statistics will be released later today with Equiti Global Markets Dubai based Analyst Gaurav Kashyap expecting a surge in the numbers. Gaurav believes that” The effect the virus could have on the labour market is staggering particularly now as more cities go into lockdown.”
The US weekly unemployment claims leapt to 3.3m between March 15 and March 22.
President of the Federal Reserve Bank of Boston Eric Rosengren expects the unemployment rate in the United States to “rise dramatically” amid the infection that has seen more than 900,000 contracted worldwide.
However, Goldman Sachs foresees five million claims amid the worsening crisis. The US service sector, which will be the most impacted, comprises around 70 per cent of the total US workforce, or around 115 million Americans. The hospitality sector which employs roughly 20 million will also be affected and this is without accounting for the aviation, education and retail sectors.
Further, ADP nonfarm payroll report released on Wednesday reveals that Private sector employment decreased by 27,000 jobs from February to March 12. Moody’s analysts say that this was the first contraction in private payroll count in a decade.
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