US stocks surged for at least a week, and the dollar wiped out the benefits after Jerome Powell signaled that the latest turbulence on the market would keep the Federal Reserve with a positive attitude.
The S & P 500 jumped on a three-week jump after the central bank chairman said the Fed's policy was flexible and the authorities "listened carefully" to the financial markets. Shares began in the rally, after data showed a hike in employment last month, followed by faster wage growth and increased participation. Reading the service sectors was at the peak of the estimates, adding optimism one day after the stock fell into worrying growth slowed down.
The ten-year yield of state money rose above 2.6 percent. The dollar gave back benefits derived from job data. Gold dropped and oil rose.
Powell's remarks were added to the debate as to whether the Federal Reserve should adopt a fully positive attitude only one day after the factory data weakened most of the recession – prompting speculation that the central bank could actually lower rates this year. While the job report can ease the immediate concern that the world's biggest economy is worrying about the recession, investors are also aware of a number of other risks.
Trade remains in focus, with middle-level US officials traveling to China for talks next week, just as tariff effects have begun to appear in corporate profit warnings. China moved to provide liquidity for the slowdown of the economy, and the political drama in Washington continues, with exclusion that shows no sign of resolution.
"A strong December job report is net positive for stocks, as investors' biggest concerns slow down growth," said Alec Young, CEO for global market research at FTSE Russell. "December's strong work benefits help ease this concern. It's hard to fear the recessionary worries with the strongest growth in the workplace we've seen for years."
Optimism on Friday for the economy and trade did not do much to circumvent the growth that hit the global stock in the past month, with high averages above 10 percent of previous highs. CB bills yields of 3.2 percent in November are now lower by 60 basis points, as investors re-examine growth prospects in 2019. Gold climbed to multi-monetary highs and the harsh energy dropped, adding to the anxiety that the flag demanded.
Here are some events that investors can focus on in the coming days:
FED President Powell is interviewed by his predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association on Friday. Atlanta Bank President Rafael Bostic joins a panel for long-term macroeconomic performance.
And these are the main moves of the markets:
The S & P 500 index climbed 2.7 percent from 10:38 am in New York. The industry average Dow Jones advanced 600 points, while Nasdaq 100 added 3.4 percent. The Stoxx Europe 600 index grew 2 percent to the highest in more than two weeks, the biggest advance in a week. The German DAX index rose by 1.8 percent to the highest in two weeks, with the biggest jump in more than a month. MSCI Asia-Pacific Index has fallen by 0.2 percent. MSCI Index of New Markets increased by 0.9 percent, the highest in one week.
The index of the Bloomberg dollar index rose 0.3 percent. The euro fell 0.4 percent to $ 1,1353. The British pound was flat at $ 1.2626. The Japanese yen fell 0.8 percent to 108,483 per dollar.
Ten-year treasury yields increased by eight basis points to 2.64 percent, the biggest increase for more than a week. The two-year rate jumped nine basis points to 2.47 percent. The German 10-year yield rose by four basis points to 0.196 percent. The spread of Italian 10-year bonds over Germany dropped to two base points at 2,683 percentage points.
West Texas Middle crude oil climbed 2.3 percent to $ 48.16 per barrel, reaching the highest in more than two weeks, with five consecutive advances. Gold futures dropped 0.8 percent to $ 1,284.60 an ounce, the first withdrawal for more than a week and the biggest drop in two weeks.