Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European shares jumped the most since January, buoyed by a surprise election win for British Prime Minister David Cameron’s party and improving U.S. jobs data.
Stocks extended gains after data showed the U.S. jobless rate in April fell to a six-year low, while payrolls climbed 223,000 (Below estimated 224,000), a faster pace than in March.
The statement from the Fed’s last meeting said that the continuous progression of the labor market is a necessary (but not sufficient) for the central bank to start normalizing monetary policy. If job creation was well above the estimated we would watch to an appreciation of the dollar and a rise in yields on sovereign bonds, which could translate into a scenario not very favorable to equity markets. If the generation of jobs was significantly lower than estimated, the dollar would lose value, yields should come down but fears about the economy should increase. Therefore, the best scenario seems to be the present one, which is near the forecasts.
Greece’s ASE Index fell before a meeting of euro-area finance ministers May 11, the only western-European market to decline Friday. Officials may consider tightening liquidity rules for Greek banks unless they see progress in the government’s talks with creditors, people familiar with the matter said this week.