Cathay Pacific Haitong released a research report stating that in October, the US added 165,000 new non-farm payrolls, far exceeding market expectations of 70,000, mainly driven by professional and commercial services, education and health services. The unemployment rate fell back to 4.1%, while the labor participation rate rebounded for three consecutive months, indicating that demand for labor is still stable. Employment is no longer a reason for the Federal Reserve to remain on the sidelines. Combined, inflation is still significantly higher than the target. We judge that the Fed may raise interest rates by 25 basis points in December.

Cathay Pacific Haitong released a research report stating that in October, the US added 165,000 new non-farm payrolls, far exceeding market expectations of 70,000, mainly driven by professional and commercial services, education and health services. The unemployment rate fell back to 4.1%, while the labor participation rate rebounded for three consecutive months, indicating that demand for labor is still stable. Employment is no longer a reason for the Federal Reserve to remain on the sidelines. Combined, inflation is still significantly higher than the target. We judge that the Fed may raise interest rates by 25 basis points in December.