US companies added 201,000 to payrolls in May, according to the ADP National Employment Report. The gain represents a solid improvement over April’s 165,000 advance. Although economic growth remains modest, today’s update suggests that recession risk remains low for the US. Today’s release also strengthens the view that Friday’s official jobs report from Washington will deliver upbeat numbers.
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The expected risk premium for the Global Market Index (GMI) inched higher in May, rising for the first time in four months. GMI — an unmanaged, market-value weighted mix of the major asset classes — is projected to earn an annualized 3.9% over the “risk-free” rate in the long term. (For details on the equilibrium-based methodology that’s used to generate the forecasts each month, see the summary below). Today’s updated estimate, which is based on data through the close of last month, increased 20 basis points from the previous projection.
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● US May auto sales race to strongest pace in nearly a decade | Reuters
● US factory orders fall for eighth time in nine months In April | MarketWatch
● OECD Cuts Global Growth Outlook as Investment Lags | Bloomberg
● Eurozone Growth Ticks Lower In May: PMI Composite Index | Markit
● German yields extend rise on inflation, Greek prospects | Reuters
● China’s service providers see sharpest rise in new orders for 3 years: PMI | Markit