Strong jobs numbers in the US swamped trade concerns to push stock markets higher in Friday night trading. The US dollar continued its rise, containing base metal gains and pressuring gold. Political resolution in Italy and Spain cheered European investors. The positive momentum will likely see Asia Pacific markets erase some of last week’s losses, although a full economic calendar may see a cautious start.
The creation of 233,000 jobs in May pushed US unemployment to the lowest level in decades. A positive surprise on wages growth added to the brighter outlook, despite the implications for interest rates. Investors appeared unconcerned about the ongoing trade discussion between China and the US, perhaps due to a lack of headlines.
In Italy a new government hit the ground running with renewed promises on immigration and spending. Conflict with Brussels appears inevitable, especially on debt limits. Nonetheless continental exchanges surged, led by a 1.75% gain in the Spanish index following the announcement of an orderly government transition.
Traders and investors have a lot to digest this week. US durable goods, PMIs in China, Japan and Europe and global trade data may inform market moves. In Australia retail sales today kick off a week that includes an RBA interest rate decision and GDP numbers.