U.S. job openings
U.S. job openings surged to a record high in July, but a lag in hiring suggested employers were struggling to find qualified workers to fill the positions.
The monthly Job Openings and Labor Turnover Survey, or JOLTS, released by the Labor Department on Wednesday also pointed to tightening conditions in the labor market, which could spur faster wage growth.
Job openings, a measure of labor demand, increased 228,000 to a seasonally adjusted 5.9 million, the Labor Department said. That was the highest level since the series started in December 2000 and pushed the jobs openings rate up one-10th of a percentage point to 3.9 percent in July.
"This suggest wages should be pressured higher and, therefore, either price increases will pick up or profit margins will be squeezed further," said John Ryding, chief economist at RDQ Economics
FED
Federal Reserve Bank President of Richmond Jeffrey Lacker said on Wednesday there is a 'strong case' for a rate hike in September. Lacker said the recent employment and gross domestic product numbers point to a recovery in the second half of 2016.
The U.S. labor market could already be at full strength, Kansas City Federal Reserve President Esther George said on Wednesday."I believe we are at or near full employment," George told lawmakers in the House of Representatives at a hearing on the Fed's effectiveness and governance structure.
Beige Book
The U.S. economy grew at a modest pace in July and August as a strong labor market failed to put much upward pressure on wages and prices, a Federal Reserve report showed.
“In general, expectations of wage growth for the coming months were modest” and price increases “remained slight overall,” according to the Fed’s latest Beige Book release, a survey of business contacts published Wednesday in Washington.
While the job market “remained tight in most districts,” overall consumer spending was “little changed” from the previous report, it said.
Oil
Oil prices rose 1.5 percent on Wednesday as the market focused on the possibility that the world's top producers would agree on an output freeze.
Trade was choppy as some traders eyed U.S. oil inventory data due late Wednesday and Thursday morning for clearer direction.
Brent futures rose 72 cents to settle at $47.98 a barrel after trading between $46.97 and $48.10.
U.S. crude traded between $44.55 and $45.58 before finishing 67 cents higher on the day at $45.50. That was a third day of gains in a row for the U.S. futures.
Reference: Reuters, Bloomberg, CNBC
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