FTSE +41 points at 7584
DAX +66 points at 12,760
CAC +43 points at 5352
As global leaders decried Donald Trump’s decision to withdraw the US from the Paris Climate Accord, investors were quietly pumping funds into the stock market. Dumping the climate deal hasn’t really hurt or hindered investor’s appetite for risk. If anything, The Donald taking a difficult decision to fulfill a campaign pledge is welcome if the same can be done with respect to tax policy.
The Dow Jones, which has been lagging the tech-heavy Nasdaq of late hit a new closing high on Thursday. Stock gains came alongside a rise in the US dollar, which rose against most major currencies, with precious metals prices turning lower.
Surprisingly good private payrolls data has increased confidence in the US economy ahead of today’s jobs report. The Fed looks set to raise rates this month irrespective of recent data, so investors are glad to see an economy that can withstand it. Expectations are for 185k US jobs to have been created in May, down slightly from the 211k in April with earnings growth of 0.2% m/m.
In Asia, Japan’s Nikkei index breached 20k for first time since 2015, matching similar gains in Hong Kong and Australia.
European investors look to be taking heart from optimism in Asia and the strong finish on Wall Street with all the major indices opening higher. It’s a little quiet on the corporate and economic calendar so it may end up being a wait-and-see type day before the US jobs report.