In today’s Comment we will briefly preview this afternoon’s US labor market data before discussing the summer bump in cases Europe is now experiencing. Regarding US labor market data, Bloomberg consensus expects the pace of job gains to have slowed to 1.5 million in July, down from nearly 5.0 million in June. The cause of the labor market slowdown is obvious: the Coronavirus spread further in the summer, forcing parts of the US to pause or even reverse reopening of the economy and broader society. Furthermore, there is uncertainty over the next stimulus package as a number of measures from the first 2 trillion USD package that are propping up consumption are expiring.


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