Global equities ended the week on a high, with indices across the UK, Europe and the US all hit fresh highs.
Global markets benefited from an increase in investor risk appetite as equity benchmarks reached never before seen levels. The FTSE100 was on course for another very impressive session before employment data from across the pond rained on its parade and capped the blue chip indexes gains into the afternoon. Non-farm payrolls were short of expectations showing a 138K increase and marking a sharp decline from April’s figure of 174K. Both job creation and wage growth was down in May and with the revision south of the previous month’s figures as well, the dollar was unable to prevent the inevitable, as GBPUSD broke through 1.29 again. Even the fall in the unemployment rate to a 16 year low was unable to stop the greenback losing ground as EURUSD spiked close to 1.13 late afternoon.
Oil prices were pushed lower again last week, as fears of another global supply glut startled traders. The commodity’s retreat continued after Donald Trump’s withdrawal from the Paris climate accord added to investors woes already present from the previous weeks OPEC meeting. Mr Trump’s removal from the agreement was met with widespread condemnation last week and concerns that an oil drilling spur could result from the decision, suppressed Brent’s price below the key $50 per barrel level.
This morning the Services sector round-off a hat-trick of PMI’s for the UK at 9.30. The numbers for May were disappointing, showing a three month low as new business activity dipped. The rest of the day is fairly quiet until 15:00 when ISM non-manufacturing PMI data from the US will reach.