Global equities extended their rally on Friday as risk appetite was encouraged by lower than expected jobless claims in the US. Weekly jobless claims dropped 42,000 w/w, indicating a fast improving labour market which went some way in supporting US equity indices higher during yesterday’s trading session.
The positive sentiment carried over into the European session where major indices started the day on a strong footing as London’s blue chip index climbed above 6,730 on opening. Gains remained steady throughout the day and at the time of writing the index was trading 0.5% higher. France’s CAC and Germany’s DAX were also encouraged by the reinvigorated risk appetite, trading up by 1.1% and 0.8% respectively at the time of writing.
Over on Wall Street, the S&P 500 and DJIA built on previous gains, opening 0.1% and 0.15% higher respectively and reaching new intraday highs as 10 year treasury yields pushed above 3% for the first time since September with investors shifting funds from bonds to equity markets.