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International Market Update
- European markets closed lower on Friday as traders awaited new economic data from the
Russian attack in Ukraine took centre stage, as did the EU’s recent announcement of a partial import freeze on Russian oil. OPEC and its oil-producing allies agreed Thursday to increase output more than expected in July and August as Russia’s incursion into Ukraine wreaks havoc on global energy markets. Britain’s FTSE 100 remained flat on Friday closed for the Queen’s Platinum Jubilee celebrations.
- U.S. equity markets slipped Friday, ending the week lower as investors digested an unexpectedly strong jobs report and its implications for future monetary policy. The latest labour market report showed that U.S. hiring remained strong in May. Nonfarm payroll jobs rose by 390,000 last month, according to the Bureau of Labour Statistics announced Friday. Economists had expected 328,000 jobs to be added, according to Dow Jones. Average hourly wages rose 0.3% in May, slightly below the consensus estimate of 0.4% and in line with April’s pace.
- Stocks in the Asia-Pacific region trended mixed this morning, as a private survey showed a further decline in
China’s services sector in May. The Caixin Purchasing Managers’ Indexfor China’s services sector, released Monday, came in at 41.4, better than April’s reading of 36.2 but still in contraction territory. The release follows last week’s official non-manufacturing PMI reading of 47.8 for May, an improvement from April’s 41.9 but still below the 50 mark that separates expansion from contraction.
In International News
EasyJet airline cancels about 80 flights
Low-cost airline EasyJet on Sunday cancelled 80 flights due to the ongoing difficult conditions. The European airline said Sunday it was working to help customers rebook flights and find hotels. EasyJet cancelled 98 and 5% of its flights, respectively, according to flight tracking website FlightAware. It also showed that 822, or 45%, of its flights were delayed.
Earlier in May, Easyjet had cancelled more than 200 flights due to airport delays and other restrictions that affected travel during the school vacations. The European airline has been hit by a series of problems since the lifting of restrictions at COVID led to a resurgence in travel. Many UK airports are struggling to recruit enough ground staff, and easyJet has also faced problems IT.
Abbott Nutrition resumes baby formula production at reopened Michigan factory
Abbott Nutrition on Saturday resumed production of infant formula at its plant in Sturgis, Michigan, taking a step toward addressing a nationwide shortage. The company received the green light from the U.S. Food and Drug Administration (FDA) after meeting “initial requirements” under a May 16 consent order. The company said it would resume production of EleCare, a food for children who cannot tolerate other products, and other specialty and metabolic foods. Supply problems began early in the Covid 19 pandemic and were exacerbated in part by the February closure of the Michigan plant due to contamination.