🎙Markets on the Move⏳

Equity markets remain supported after Russia and Ukraine signaled return to talks as Ukraine is open to the idea of neutrality as part of the negotiation framework. While the bond market yield signal scary recession ahead, technology stocks continued to climb higher, pushing away any signs of fear. This is despite President Biden’s new budget plan that will target the rich in taxes and dampen shares buyback. 

The highlight of the day is Pika World’s favourite Tesla (sadly our shares were called away) which moon after there is indication of a possible stocks split in the future as it requires shareholders approval. Based on past history, this often leads to jump in stock prices in the near term as what we are seeing now. 

However, companies could perhaps sidetrack this by boosting dividends which is also a way of returning cash to investors. 

🍕Workers back to work!🎉

As the economy continues to re-open, fewer workers quit their jobs as savings appear to be run down fast for my consumers. It was a period when many workers dropped out of the labour force due to the virus spreading like wildfire, and the child-care system constraint forced many parents to take care of their kids. 

It sparks a re-thinking of the generous federal government assistance, and the kind of work from home benefits companies are willing to dash out to their employees to retain staff. The weighing of the risk and return appears to motivate many to exit temporarily from the labour market. 

The tide appeared to reverse soon. After several months of a stagnant figure seen in the labour force participation, we finally see a steady climb in the rate. Most significantly is the Labor Department data that had indicated a fall of workers quitting their jobs. 

Analysts are expecting the trend to continue, which can further boost the economy amid a less accommodative monetary regime. Pika World will be monitoring future trends in the labour market.