So where to now for global markets after the solid US jobs report for March ended, for now, fears of a slowing economy and even recession?
Bond yields rose for a second week last week in the US, Australia and elsewhere and all that gloomy talk about the meaning of inverted bond yield curves has vanished.
The Fed remains in wait and watch mode (as do central banks in Europe, Japan, Australia, and NZ) and stockmarkets have started moving cautiously higher, especially in the US, even though the about to begin first quarter earnings season is likely to produce slightly weaker profits and mixed outlooks.
Global share markets pushed higher over the last week helped by more hints suggesting improving global growth this year, including business conditions surveys in China and the US and a steadying in the Eurozone.
Also helping have been more indications that the US and China are getting closer to a deal on trade (but with lingering issues with around enforcement and the removal of last year’s tariffs have yet to be agreed on ).
For the week US shares rose 2.1%, Eurozone shares added 3.1%, Japanese shares rose 2.8% and Chinese shares rose 4.9%.
After an initial rally to a six month high on Wednesday, the market lost all those gains on Thursday and Friday but should start on a brighter note this morning (See separate story).
Wall Street shares closed higher on Friday, with the S&P 500 having its longest win streak since October 2017, as investors welcomed a solid jobs report and upbeat comments on a US-China trade deal.
The S&P 500 rose 13.35 points, or 0.5%, to 2,892.74, rising for the seventh straight session. The Dow added 40.36 points, or 0.2%, to 26,424.99 and the Nasdaq was up 46.91 points, or 0.6%, to 7,938.69.
For the week, the S&P 500 was up 2.1%, the Dow 1.9% and the Nasdaq a solid 2.7%.
