Disappointing November Us Job Figures Raise Hopes Of A Deal On Fiscal Stimulus

Highlights:

• In November private payrolls grew by just 245k units, well below expectations. Employment stalled or decreased in the sectors most exposed to rising infections.
• The unemployment rate went down due to a reduction in labour participation, highlighting the possible long-term labour market consequences of the infection.
• With employment still more than 6% below the pre-crisis level, pressure is mounting for a fiscal stimulus bridging the gap before vaccines availability enables a growth pick up. Senate Republicans have opened to a compromise on a 900 US$ package.
• At the same time, these numbers add to the case for Fed action on Treasury purchases.