Global shares and US yields rose on Friday, June 2nd following the release of strong jobs data and the passage of the debt ceiling. The MSCI world equity index, which tracks stocks in nearly 50 countries, surged 1.52% as investors reacted positively to news that the U.S. economy added 223K jobs in May according to a report from the Labor Department’s Bureau of Labor Statistics (BLS). Additionally, Congress passed legislation raising the federal government’s borrowing authority through July 2021 with no spending cuts attached – something markets had been expecting for some time now but were uncertain would happen without major concessions from Democrats or Republicans alike.
The rise in global shares was also attributed to an increase in US Treasury yields after 10-year notes hit their highest level since 2011 at 3%. This could be seen as a positive sign by many investors who view higher rates as evidence that economic growth is accelerating rather than slowing down – though it may cause concern among those worried about rising interest payments eating into corporate profits going forward this year and beyond.
Overall, Friday’s market activity reflects investor optimism surrounding both domestic job growth and fiscal policy stability here at home; however, it remains unclear how long these trends will last given ongoing trade tensions between China & other nations around the world along with potential political uncertainty ahead 2020 elections later this year or next spring/summertime period.
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