Friday, May 8, 2015

Economic Journal - Friday, 5/8/2015


(As of 7:15 am PST)

Global equity markets are surging Friday as positive data around the world is helping to lift investor confidence on what otherwise was a disappointing week. Asian markets kicked things off early Friday with Chinese stocks rallying 2.28% after suffering one the worst weekly performances since May 2010. Optimism carried over into Europe as investors celebrated the election victory for the conservative party in the U.K. European indexes were sharply higher across the board. In the US, investors traded up the non-farm payrolls report which showed the private sector added 223,000 jobs in April while the unemployment rate dropped to 5.4%, the lowest level since May 2008.  The healthy jobs number was exactly what the market wanted, with most analysts still expecting the Fed to raise interest rates later this year. Gold prices are flat while oil is down slightly. If today’s rally can hold, it will put US benchmarks on pace for weekly gains after what looked like dismal performance earlier in the week.  

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