Stocks seesaw after red hot US jobs report
|The US economy is still firing on all cylinders if today’s jobs report is anything to go by, pointing the way to more rate increases this year.
Stocks shrug off strong US jobs report
“Equities wobbled in the wake of today’s US jobs report, but have managed to stabilise during the course of the afternoon, suggesting that this bear market bounce is not doomed yet. The solid jobs number, falling unemployment rate and rising wage figures show that the US economy, unlike many others, continues to strengthen, even as the Fed ratchets up its tightening programme. Thus it appears that the Fed can push on yet further, putting another 75 bps rise in play for September. This has put new fight into the dollar, but equities have seen the positive side too, shrugging off losses on hopes that the US consumer can remain resilient too.”
US still strong but recession concerns remain
“While America might be in good shape, the rest of the world is worse off, and this risks pulling the USA into a recession in spite of good US data. Sterling in particular seems likely to weaken further as the disparity between the US and UK grows wider. Further drops for sterling will counter much of the BoE’s efforts to control inflation, leaving yesterday’s gloomy outlook firmly in place.”
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