As the US jobs report takes markets by surprise showing figures exceeding expectations, investors show more confidence despite trade wars prospect.
US jobs report shows that there has been a bigger than expected growth in new jobs, however, the wages aren’t going up significantly enough.
Friday’s Non-Farm Payroll demonstrated that 313,000 new jobs were created in America last month, compared to a forecast of 205,000, while wages gained just 0.1% during the month, showing the slowdown from 2.9% to 2.6%.
Investors feel more positive as slow wage growth means the US Federal Reserve will probably implement three interest rates hikes this year instead of four. It is good news for stock markets as limited inflation helps keep markets bullish.
Asian markets raised overnight, and Europe followed with the Stoxx Europe 600 Index rising again.
In London, the FTSE 100 has gained 20 points (0.3%) to 7245 points.
Germany’s DAX is stronger, gaining 0.9%, while Portugal is up 0.8%.
The dollar fell slightly, as well as most commodities, while the bonds stabilised.