World markets are off to a strong start this week, with stocks mostly on the rise following Wall Street’s impressive performance last Friday. The market saw its best day in over two months, sparked by favorable U.S. employment data that managed to calm investor nerves. As London’s markets took a pause for a bank holiday, Asian trading markets saw positive movements. The Hang Seng in Hong Kong closed 0.4% higher while Taiwan’s Taiex gained 1%, showing positive momentum in the region despite some challenges.
While some markets like Tokyo and Seoul were closed for holidays, the overall outlook seemed positive. A private sector survey in Hong Kong indicated that the services sector had grown at a slower pace in April due to rising costs, but there was an uptick in new orders and improved business sentiment, signaling resilience in the face of challenges. The global markets seemed to be digesting the U.S. employment data, with the S&P 500 rising 1.3% to 5,127.79 on Friday, its best performance since late February. The Nasdaq composite also ended 2% higher, boosted by strong gains in the technology sector.
The Labor Department reported that the U.S. added 175,000 jobs in April, a significant decrease from the previous month but still a positive sign considering the circumstances. Average hourly earnings, a crucial factor in inflation dynamics, rose less than expected, providing some relief to investors worried about overheating. The market rally was broad-based on Friday, with technology stocks leading the charge, reflecting a growing appetite for growth-oriented investments.
As the new week kicked off, benchmark U.S. crude oil prices rose to $78.90 a barrel in electronic trading on the New York Mercantile Exchange, indicating some optimism about the global economic recovery. The markets seemed to be shrugging off earlier concerns about inflation and focusing on the gradual reopening of economies worldwide. Overall, the positive momentum in the markets reflects a cautious optimism among investors, who are closely monitoring economic indicators for signals about the future direction of the global economy.
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