Markets Sentiment Stabilizes Amid Expectations of US-China Trade Deal
Global stock markets began November with a significant rally after a brutal October, on optimism from strong corporate earnings reports and hopes for a thaw in US-China trade relations. This has reduced support for some currencies, such as the dollar, that benefit from periods of heightened risk aversion. The prospect of a trade deal between the US and China is also providing a boost to the markets on the final trading day of the week.
Markets expect the US employment report, to get a hint about further pace of the Fed’s rate hikes. The number of people employed is expected to increase by 190.000 in October after a rise of 134.000 in the previous month.
Meanwhile, the average hourly earnings figures are expected to rise 3.1% from a year earlier, quicker than the 2.8% increase a month earlier. The unemployment rate is expected to grow to 3.8% in October from 3.7% in September.