10 Things You Need To Know - February 6, 2018

Key data releases this week include: ISM non-manufacturing index (Mon), JOLTS job openings (Tue), consumer credit (Wed), and deadline for government funding agreement (Thu).
Haver
February 2, 2018
The labor market remains firm. Nonfarm payrolls increased 200,000 (1.5% y/y) during January following a 160,000 December gain and a 216,000 November rise. Together these two figures were revised down by 24,000. A 184,000 increase in payrolls had been expected in the Action Economics Forecast Survey.
Haver
January 31, 2018
At Wednesday’s of the FOMC, the federal funds rate target was held steady in a range of 1.25%-1.50%. The Fed's expectation for economic growth this year is 2.5%, then 2.1% in 2019. Expected PCE price inflation in 2018 is 1.9%, then 2.0% next year. The expected unemployment rate next year is 3.9%. As a result, the targeted level of the fed funds rate will increase to 2.1%, then 2.7% in 2019.
The Independent
January 30, 2018
The Wall Street Journal
Tuesday, January 30, 2018
January 30, 2018
Politico Pro
The eurozone's GDP rose 2.5% last year, the fastest pace since 2007, outstripping GDP growth in the US and the UK, the EU's statistics agency said. Accelerating growth in France's economy, which included a major increase in business investment, played a key role in driving up the region's GDP.
Market News International
February 4, 2018
In January, activity in China's service sector accelerated to its highest level in nearly seven years. The Caixin service Purchasing Managers Index hit 54.7, up from December's 53.9.
South China Morning Post
February 5, 2018
China will block all websites, foreign and domestic, providing information related to cyrptocurrency trading and initial coin offerings in an effort to completely shut down the cryptocurrency market, according to a report by Financial News, a publication associated with the People's Bank of China. When China banned cryptocurrency trading and ICOs in September, some investors simply shifted to offshore platforms.
Barron’s
February 5, 2018
The increased synchronization of bonds and stocks could spur more selling by portfolios that utilize the negative correlation between asset classes, such as balanced mutual funds or risk-parity strategies (which leverage up less-risky asset, such as bonds, to achieve the returns of riskier assets, such as stocks).
Barron’s
February 5, 2018
To the extent that politics affects stocks, a mid-term election year carries added concerns. The party that won the Presidency two years earlier tends to lose seats in the house and senate. This can produce some uncertainty and add to market jitters.
The Hill
January 31, 2018
The New York Times
Wednesday, January 31, 2018
The US government will hit its debt limit early in March because recent tax cuts have reduced the revenue flowing into the Treasury Department, the Congressional Budget Office said. Previously the budget office said the debt limit would need to be raised in late March or early April.
Deutsche Welle /Deutsche Presse-Agentur/Reuters
January 29, 2018
India predicts GDP will expand by 7% to 7.5% in the 2018-2019 financial year, replacing China as the world's fastest-growing major economy. The forecast largely matches an International Monetary Fund prediction that the Indian economy might grow 7.4% this year, topping China's 6.8%.