Market gloomy ahead of US jobs report

<p>Kia ora,</p><p>Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news we are ending the week waiting in a risk-off mood where commodity currencies like the NZD are being hit ahead of the key US jobs report and inflation-averse central bank officials.</p><p>Last week there were +167,000 <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20221978.pdf" target="_blank"><strong>new jobless claims</strong></a> in the US, a small rise, leaving 1.229 mln people on these benefits, and remaining near an all-time low level.</p><p>Separately, almost -30,000 job cuts were <a href="https://www.challengergray.com/blog/job-cuts-surge-46-in-september-2022-up-68-from-same-month-last-year-september-hiring-intentions-fall-to-lowest-level-since-2011/" target="_blank"><strong>reported</strong></a> for September, and even though it is a three month high it is only a very small rise in the context of the size of their labour force (153 mln).</p><p>Labour market data is front-of-mind in markets today because we are awaiting the September non-farm payrolls report which will be released this time tomorrow. It is expected to report an expansion of +250,000 new jobs, and more for private-sector payrolls.</p><p>China may be on holiday, but they remain active in international bodies. They have successfully convinced the UN Human Rights Council ((UNHCR) to not debate (even talk about) Xinjiang abuses, and it is not the first time their views have prevailed. It reinforces the fact that most UN countries are not democracies, and are increasingly siding with anti-democratic forces. As the lender of choice for many countries over the past decade, Beijing now has the power to cut them off, lend more or forgive some of their debts. Debt is a powerful weapon.</p><p>It can cut both ways. Overseas money continues to <a href="https://asia.nikkei.com/Business