Jump in US stocks after a relatively good data on the labor market. The US economy created 223 thousand. New jobs in April, significantly revised downward over 85 thousand. In March. However, expectations were for growth of employment by 230 thousand.
The unemployment rate expected to decrease to 5.4% from 5.5% in March, reaching its lowest value since May 2008.
At first glance it seems that the data support a change in Fed policy and raise interest rates in September. But in view of the report on the growth of the US economy in the first quarter, which slowed to only 0.2%, nothing is certain.
In practice, today’s data show good economic fundamentals, but probably not greatly affect the monetary policy of the Federal Reserve.
Thus, the Dow rose 1.42% to 18,178 points. The Nasdaq is up by 1.26% to 5008 points. A broad S & P 500 won 1.29%, to 2115 points.
Known negative impact on risk appetite statement is the Bank of China today. The institution pointed out that although China’s economy is under pressure, there is currently no need for new financial incentives, such as rising debt levels limit the possibility of government investment to support economic growth.
Against this background, the US dollar appreciated by 0.25% to 1.1240 EUR / USD. The dollar index DXY e up by 0.01% to 94.63.
Futures on US light crude oil for June delivery dropped 0.37% to 58.72 dollars per barrel. And the price of gold rose by 0.15% to 1 186.28 dollars an ounce.
Won a landslide victory of the conservatives in parliamentary elections in the UK removed a major source of uncertainty for financial markets in Europe. Speculation about a political crisis in London similar to that in Belgium, can not be realized, provided that the party of new, old British Prime Minister David Cameron and Scottish nationalists who support him will have an absolute majority in parliament.
Another big source of risk for the European market – the problem with Greece remains unresolved. Today the chairman of the Eurogroup Jeroen Deyselblum said that the meeting of eurozone finance ministers on Monday will not be achieved deal with government in Athens. Greek representatives in turn indicated that make positive steps for the release of blocked 7.2 billion. Euros from last rescue program for the country.
Greece is expected to succeed without these funds to pay the due next week 750 million. Euros to the International Monetary Fund.
Otherwise, today reported a sharp increase in the trade surplus of Germany in March to 19.3 billion. Euros, seasonally adjusted data. In today’s report, the positive German trade balance for February was revised downward by 19.7 billion. EUR 10.0 bn. Euros. Without seasonal adjustments surplus for March was 23.0 billion. Euros, well above expectations. Imports rose 7.1%, while exports jumped by 12.4%.
The report on trade is in stark contrast with data on German industrial production, which surprisingly fell by 0.5% compared to February.
In Britain it was reported decrease in trade deficit to 10.1 billion. Pounds in March. However, the report was weaker than expectations for a decline to 9.8 bln. Euro.
Against this backdrop, the FTSE 100 rose by 1.84% to 7015 points. The German blue chip index DAX won 0.55% to 11,470 points. A French CAC 40 is up by 0.74% to 5004 points.
In Asia, risk appetite was also strong. The uncertainty coming from the British election had global dimensions, since London is the largest financial market in Europe. But Britain is a key mediator in both the political and economic aspect in relations between the US and the EU. At the same time historical British capital and banks have significant influence in Asia.
So today, the Nikkei 225 rose 0.45% to 19,379 points. Hang Seng rose 1.05% to 27,577 points. A main stock index in Shanghai jumped 2.28 percent to 4206 points, although today it was reported a decline in China’s exports by 6.4% in April, with the collapse of imports by 16.2%. The data fueled speculation that the government in Beijing will resort to new incentives to stop the economic slowdown. Despite the strong decline in imports, the Chinese trade surplus was below expectations, amounting to 34.1 bln dollars in forecasts for 39.6 bln. Dollars.
Yesterday the US appetite for risk also prevailed as broad stock market index S & P 500 rose by 0.38% to 2088 points.
Today, the euro depreciated by 0.40% to 1.1223 dollars. While the pound, rising by 1.16% to 1.5428 GBP / USD. The dollar index DXY rose by 0.16% to 94.78.
Crude oil Brent for June delivery rising by 0.35% to 65.77 dollars a barrel, recovering from yesterday’s corrective decline. The gold price rose by 0.13% to 1 186.07 dollars an ounce.