Guotai Haitong said stronger-than-expected May nonfarm payrolls reinforced signs
of US labor-market stabilization and lifted market rate-hike expectations,
triggering broad asset re-pricing: stronger dollar, sharp jump in US Treasury
yields, steep falls in US equities and weaker gold. The firm sees significant
internal division at the Federal Reserve and views a rate hike this year as
unlikely, but warns June may bring temporary liquidity shocks that could leave
US equities volatile for at least one to two months.
