Saturday, 8 June 2019

Markets rise as fall in US job growth may restart “cheap money train again”

Markets rose on Friday.

The S&P 500 rose 1.1 percent, the STOXX Europe 600 rose 0.9 percent and the Nikkei 225 rose 0.5 percent.

Markets shrugged off a report that the US economy created just 75,000 new jobs in May, well below the 185,000 estimated by economists surveyed by MarketWatch.

Mike Loewengart, vice president of investment strategy at E-Trade, wrote that the report “supports the argument for cutting rates beyond politics or trade issues”.

“That said, our historically low unemployment rate hasn’t moved,” he added. “So the Fed will have to walk a really thin line.”

Still, Sven Henrich, founder and lead market strategist of, thinks that the Federal Reserve and other global central bankers are “hapless and scared” and likely to “embark on the same cheap money train again”.

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