US: Jobless claims and Philly Fed survey in the limelight - Nomura

According to analysts at Nomura, initial jobless claims and Philly Fed survey are going to be the key economic releases for today’s US session.

Key Quotes

“Initial jobless claims remain subdued in a tightening labor market. A surprise increase in the unemployment rate in June was driven not by the newly unemployed but rather a sharp increase in the number of unemployed workers reentering the labor force. With elevated labor demand, we expect initial jobless claims to remain low over the medium term.”

“Philly Fed survey: Similar to our view on Empire State survey, we think that the Philly Fed survey would reflect ongoing momentum in the industrial sector despite elevated trade uncertainties. We expect the headline index to reach 20.0 in July, after registering 19.9 in June. This reading would be consistent with steady pace of business growth in the sector. Substantial escalation in trade tensions, however, can weigh on sentiment materially.”