Europe got back on the horse on Friday, resuming a June rally that paused momentarily yesterday ahead of this afternoon’s likely shocking nonfarm jobs report.
Despite consumer confidence in the UK hitting its lowest level in a decade – the Gfk reading fell to -36 – the FTSE added another 60 points after the bell, pushing it past 6400 and back to its recent 3-month highs.
The Eurozone indices were even more energetic. The DAX climbed 220 points to 12650, hitting levels last seen at the end of February, while the CAC struck 5100 following a 1.8% increase. This is likely the region feeling the effects of Thursday’s ECB €600 billion expansion of its Pandemic Emergency Purchase Programme, news that initially mainly benefited the euro.
The Dow Jones is set to echo this growth when trading gets underway stateside. The futures are pointing to a 250 point surge, one that would lift the Dow above 26500, its own 3-month peak.
Standing between the Dow and that fresh high is the nonfarm jobs report for May. Analysts are expecting the headline figure to show that a further 7.75 million jobs were lost last month, an estimate that is already lower than the initial 9 million-plus assessment thanks to Wednesday’s far better than forecast ADP (NASDAQ:ADP) reading.
It bears repeating that it is insane that such a high figure could draw market-relief, but then, we are in unprecedented times, and investors have quickly adapted to this new normal.
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