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US jobs report drives stocks higher on both sides of the Atlantic

US and European stocks rose on Friday after monthly jobs from the former exceeded economists’ expectations.

The US labor market added 850,000 non-farm jobs in June, with a forecast of 720,000. This figure is well above the 559,000 increase in May and the unexpectedly weak 278,000 new hires in April.

Xian Chan, Chief Investment Officer at HSBC Wealth Management, said: “We are positive about the consumer discretionary department, which is in a position to benefit from continued service recovery.”

The S & P 500 rose 0.2% on the opening bell, while those tracking the tech-intensive Nasdaq Composite rose 0.4%.

The regional STOXX 600 rose 0.3% and the UK FTSE 100 rose 0.2%. This is because major energy producers such as BP and Royal Dutch Shell have taken the lead and investors have bet on the economic benefits of deregulating Covid-19 despite spreads. Of the delta variant of the virus.

Bastien Drut, Chief Theme Macro Strategist at CPR Asset Management, said: “”[Also] The European market is seeing an increasing number of circulating stocks benefiting from this resumption. ”

Strong job numbers after months of lower-than-expected additions indicate that the US economy is recovering from a pandemic depth when blockades constrain movement and close operations. Federal Reserve Board policymakers said inflation was prepared to temporarily exceed its target, but the sharp rise in employment puts pressure on central banks to curb economic support during the pandemic era. It will fuel speculation that you may feel it.

Sofeateldon, a cross-asset strategist at Lombard Odie, said: “Because the number of non-farm payrolls can be one of the triggers [markets] It is in standby mode. “

In June, Fed officials revised up their US growth and inflation forecasts, moving their forecasts for the first post-pandemic rise in interest rates one year ahead of schedule until 2023.

In the euro area, the European Central Bank has begun to speak more frankly about the need to prepare for the gradual reduction of stimulus measures in the pandemic era, while some US Central Bank decision makers have been on both sides of the Atlantic. recovery.

“We can see that the European Central Bank has always been very dovish and the Fed is under pressure to normalize its policies and curtail asset purchases,” said Drut, CPR. “In the next few quarters, the road will continue to diverge.”

Globally, bond yields have fallen slightly. US 10-year Treasury bonds fell 0.02 points to 1.455%, while 10-year German Treasury yields fell the same amount to minus 0.223%.

Oil prices fell and a decision was expected on Friday after Thursday’s news that OPEC + meetings of major oil-producing countries did not reach an agreement on supply policies and production levels. Nonetheless, Brent Crude, the global oil benchmark, and the US benchmark West Texas Intermediate remain above $ 75 a barrel.

US jobs report drives stocks higher on both sides of the Atlantic Source link US jobs report drives stocks higher on both sides of the Atlantic

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