Financial Markets Daily Report 08 May 2023
Investors closed the week trading with more appetite for risk, taking on board another upside surprise in labour market data in the US and easing financial pressure in the country’s regional banks.
- Investors closed the week trading with more appetite for risk, taking on board another upside surprise in labour market data in the US and easing financial pressure in the country’s regional banks.
- In particular, nonfarm payrolls rose by 253k in April, well above expectations (185k) and the previous month (165k). The jobless rate ticked down to 3.4% while average hourly earnings accelerated (0.5% m/m and 4.4% y/y).
- Sovereign bond yields rebounded across the board, more notably in the short end of the curve. In addition, equity prices rose notably, commodity prices gained while the USD hovered around recent levels against the EUR (1.10).
- The focus this week will turn to inflation, with the release of April’s CPI inflation report in the US on Wednesday, in China on Thursday as well as the final HICP readings in some eurozone countries. In addition, the Bank of England announces monetary policy decisions on Thursday.