Global Markets Rally as US Jobs Surprise and China Trade Tensions Ease

🌍 Global Stocks Rally on Strong US Jobs Data and Trade Optimism

Global stocks surged on Friday as upbeat US employment data and signs of improving China-US trade relations boosted investor confidence. Treasury bonds lost ground, and risk appetite returned across equities from Asia to Europe and the US.

The MSCI World Index rose by 0.6%, climbing to levels last seen before early April’s sharp correction, triggered by new US tariffs. Wall Street followed suit—the S&P 500 gained 1%, while Nasdaq rose 0.9%, reflecting a shift in sentiment following stronger-than-expected economic figures.

📊 US Labor Market Surprises to the Upside

The latest non-farm payrolls report showed US employers added 177,000 jobs in April, significantly above expectations of 130,000. The unemployment rate remained steady at 4.2%, reinforcing a picture of resilience in the labor market.

Jason Da Silva, Director of Global Investment Strategy at Arbuthnot Latham, commented:

“The US economy is still on a relatively strong footing. But the real driver remains what happens next with tariffs.”

The positive surprise in employment data weakened demand for US Treasuries, pushing 10-year yields up 4 basis points to 4.27% as bond prices fell.

📉 China-US Trade Tensions Show Signs of Easing

The market mood had already brightened earlier in the day after Beijing indicated the US is open to renewed tariff negotiations. This announcement followed reports of growing diplomatic backchannel discussions aimed at de-escalating trade frictions.

Still, underlying concerns persist. Several American firms have warned of significant earnings hits from ongoing trade uncertainty:

• Apple scaled back its share buyback and warned of a potential $900 million impact this quarter.
• General Motors forecasted $4-5 billion in tariff-related costs.
• American Airlines pulled its full-year profit outlook.

Despite this, European markets gained momentum: STOXX 600 rose 1.6%, Germany’s DAX jumped 2.4%, and the UK FTSE 100 climbed 1%.

📈 Asia-Pacific and Currencies React

Asia-Pacific equities were also buoyant. The MSCI Asia-Pacific index (excluding Japan) touched its highest point since March 20, extending regional optimism.

The US dollar pared earlier losses but ended the session down 1% against the yen at 143.8, while the euro traded up 0.3% to $1.1327, and the pound continued its upward trend, gaining 0.2% to $1.3298.

🛢️ Commodities Mixed: Oil Down, Gold Steady

In commodities, oil prices dropped after Saudi Arabia signaled no immediate plans to further support markets with production cuts:

• Brent crude fell to $61.14
• WTI dropped to $58.18

Meanwhile, spot gold rose slightly by 0.2% to $3,244 an ounce, as investors balanced risk exposure in the face of mixed global data.

✅ Market Rebound Amid Uncertainty

Despite mixed macro signals—such as US GDP contraction and China’s factory slowdown—the overall market tone turned bullish. Friday’s rally reflects renewed hope for a softer trade path and sustained economic strength in the US, though risks remain.