Last week, the global financial markets displayed some stability following a reduction in tariff tensions between the US and its trading partners. Concerns about a potential economic slowdown in the US arose after the release of disappointing ADP data.

The anxiety over a recession intensified as the Q1 GDP figures revealed an unexpected contraction in the economy, attributed to a surge in imports that resulted from tariffs coming into effect in April.

However, market sentiment began to shift with the anticipation of crucial economic reports. On Friday, the Non-Farm Payroll (NFP) figures were released, highlighting the addition of 177,000 jobs in April.

Although the March NFP was revised downwards, the US labour market continued to show resilience, with both reports surpassing the average monthly gains of 150,000 over the past year, indicating strength in the job market. While wage pressures eased, the unemployment rate remained steady at 4.2%, likely providing reassurance to risk assets that began to recover, alleviating the initial recession fears.

This positive shift was reflected by signs of progress in trade negotiations between the US and China.

China appeared to be more responsive to discussions........

© Business Recorder