Financial Markets Daily Report
09 May 2022

On Friday, investors focused their attention on the April employment report for the US, which confirmed that the tight labor market should allow the Fed to continue hiking interest rates. The expectation of a tighter monetary policy led to increases in the yields of sovereign bonds and volatility in stock markets.

FMDR
  • On Friday, investors focused their attention on the April employment report for the US, which confirmed that the tight labor market should allow the Fed to continue hiking interest rates. The expectation of a tighter monetary policy led to increases in the yields of sovereign bonds and volatility in stock markets.
  • Non-farm payrolls rose in April by +428k, above consensus expectations, while the unemployment rate stood at 3.6%. In addition, wages continued to rise strongly (5.5% y/y). In this context, stock indices declined across the board and the yield on the 10-year US Treasury and the German bund rose to 3.13% and 1.13%, respectively.
  • In FX markets, the US dollar strengthened against most currencies, hovering around the $1.05 level against the euro.
  • This week the focus will be on the April CPI data for the US (Wednesday) and the final April inflation figures for several euro area economies, including Spain (Friday).
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