The stock market and the dollar are growing amid positive data on the US labor market

On Monday, most Asian stocks have increased in line with S&P 500 futures amid an unexpectedly positive US employment report. Bonds are recovering from last week's losses on the credit market, while the dollar is showing an upward trend.

US businesses created 916,000 jobs in March, beating economists’ forecast of 660,000. March figures were even higher than some economists' highest expectations of 800,000. The unemployment rate fell to 6%, in line with the forecast, while the share of the economically active population rose to 61.5%. And while unemployment figures are still close to the great depression of the 1970s, Fed Chairman Jerome Powell described them as "very encouraging."

Most of Asia's regional stock indices have risen. The Indian stock market became an exception, where stocks fell the most in just five weeks as more than 100,000 new cases of Covid-19 were recorded in the last 24 hours. Many financial centers were closed for the holidays, including China and Hong Kong, as well as the major part of Europe. S&P 500 futures have been rising since Friday.

Treasury yields also continue to rise amid expectations for global economic growth following the US recovery. Treasury yield stabilized at 1.72%. US 2-year bonds yield rose unexpectedly to 0.18%. These securities haven’t responded to the strong reports for a long time and now talks on the Fed earlier rate hike may return.

Oil remains under pressure after OPEC+ leaders decided to increase production, and the increase in the number of infected in India and Europe increases risks to energy demand. Commodity currencies came under pressure following oil prices, while the dollar index rose.

Main market quotes:

S&P 500 (F) 4,024.12 +14.12 (+0.35%)

Dow Jones 33,153.21 +171.66 (+0.52%)

DAX 15,107.17 +98.83 (+0.66%)

FTSE 100 6,737.30 +23.67 (+0.35%)

USD Index 93.097 +0.046 (+0.05%)

Important events:
  • – US ISM Non-Manufacturing PMI (Mar) at 17:00 (GMT+3).

by Justforex, 2021.04.05

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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