Producers of metals and other raw materials rose after June jobs data supported the case for a Federal Reserve rate cut in the coming months.
U.S. employers added 206,000 workers to payrolls in June, slightly more than economists had forecasts. But it still marked a slowdown from May levels, and the unemployment rate ticked up to 4.1%, the latest indication that the labor market is contracting somewhat.
The slowing growth is "still within the Fed's comfort zone," though the risk is now of a more painful economic contraction, said Yelena Shulatyeva, senior U.S. economist at brokerage BNP Paribas.
"The June nonfarm payroll report appears to support some of the signs of rebalancing and cooling evident in other labor market data such as ISM employment sub-indices and jobless claims," said Shulatyeva.
Lithium prices recently hit multiyear lows in a market awash with the battery material, and analysts warn the saturation is likely to remain for some time.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-05-24 1701ET
