Kaohoon Morning Brief – 3 September 2021

1) U.S. jobless claims fell to lowest level since March 2020

The filing for unemployment insurance for the week ended August 28 was 340,000, the lowest level since the pandemic started in March 2020. Economists stated that the lower level of claims show signs of recovering in the labour market from Covid-19.

 

2) China will set up a stock exchange in Beijing for SMEs

Chinese President Xi Jinping announced yesterday that China will set up a stock exchange in its capital, Beijing, and build it into a major base for innovative small and medium-sized firms.

Moreover, China will increase support for the services sector in countries participating in the Belt and Road Initiative.

 

3) General Motors cut North America productions

General Motors Co announced that the company will reduce production at most North American assembly plants this month due to the ongoing semiconductor chip shortage that has an impact on its profitable truck and sport utility vehicles.

 

4) Chinese PMI expected to slow down in August

The Caixin/Markit services Purchasing Managers’ Index will be released around 9:45 today, but the market is expecting a slower growth in August for the reading of 54, compared to 54.9 in the previous month.