This has certainly been a rollercoaster trading week for financial markets thanks to geopolitical uncertainty and renewed trade war fears. Easing political tensions in Italy have rekindled risk appetite, ultimately resulting in global equity markets venturing higher.
The U.S. jobs report came out this morning and missed the projected number on the low side. However, bond prices declined and stocks rallied! The Nasdaq futures even hit an all-time high today before reversing lower ever so slightly. We are in a highly powerful bull market in U.S. stocks.
The big theme at the moment is rising bond yields as key central banks attempt to move away from the era of extraordinarily loose monetary policy and zero interest rates. This is due mainly to rising levels of inflation, higher rates of employment and steady growth across many developed economies.
Total nonfarm payroll employment increased by 222,000 in June, and the unemployment rate was little changed at 4.4%, the U.S. Bureau of Labor Statistics reported on July 7. Employment increased in health care, social assistance, financial activities, and mining. Household Survey Data In June, the unemployment rate, at 4.4%, and the number of unemployed persons, at 7.0 million, were little changed.
Despite the falls in buck-denominated gold, silver and copper prices, the U.S. dollar hasn't exactly been strong with the British pound/U.S. dollar (GBP/USD) currency pair and EUR/USD remaining bid throughout the week. But the dollar has performed much better elsewhere.