The US job market is surprisingly strong

North American stock markets decline on Thursday in a weak first week of the year on the good news of strong private payrolls in the US!  S&P 500 and Nasdaq lost 0.82% and 1.54% and Canada’s S&P/TSX added 0.63% so far this week.

 The US private sector added 235,000 jobs in December which is well above expectations. The tight job markets reaffirm that the US central bank will continue with its interest rate hike. The US officials also underlined that their job is not over but close to the end of this week's rating hike cycle. The tight labor market and low unemployment rate remain supportive of the hot inflation rate.

Elsewhere, giant tech companies have started their mass layoffs with Amazon laying off 5% or 18,000 of its employees, much higher than their 10,000 initial figures.

Other companies like Apple and Microsoft have warned about the depth of the recession in 2023. Bed, Bath, and Beyond, a well-known retailer announced today that they are exploring bankruptcy options as the demand has plunged at the company's retail stores.

Meanwhile, China's surging covid cases is still the top news for commodity slow demand which is expected to be resolved in the coming months.