It appears that equity markets have taken inspiration from the performance of the financial market at the conclusion of last week, with Asian stocks trading broadly higher and European shares looking positive at the time of writing.
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.
The U.S. Bureau of Labor Statistics just reported the June Non-Farm Payrolls figures, and while the data wasn't perfect, it is certainly reassuring for bulls on the U.S. economy. On a headline basis, the U.S. economy added 222,000 jobs in June, solidly above economists' expectations of 175,000 new jobs. In addition, the BLS revised its estimate of jobs growth in the previous two months higher, for a net addition of 47,000 more jobs.
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.
Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year.