U.S. Stocks Set To Open Higher As U.S. Loses Less Jobs Than ExpectedS&P 500 futures are pointing to a higher open as the April employment data is not as bad as analysts expected.
Non Farm Payrolls And Unemployment Rate Reports Are Better Than Expected
The U.S. has just released the April data on Non Farm Payrolls and Unemployment Rate. These reports are the culmination of this week’s employment data which started with ADP Employment Change report on Wednesday.
Non Farm Payrolls report showed that the U.S. lost 20.5 million jobs which was better than the analyst consensus which called for a 22 million job loss.
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The Unemployment Rate was also better than expected at 14.7% compared to analyst consensus of 16%.
Following the news, S&P 500 futures are gaining more than 1% in the premarket trading session. A better than expected employment data could provide an additional boost for stocks which have previously ignored various disappointing reports.
U.S. – China Relations Are Not As Bad As Feared
In recent days, market digested news about the potential U.S. plans to retaliate against China due to coronavirus. According to various reports, such plans could include tariffs and even sanctions.
In this light, the fate of the trade deal between U.S. and China was under question. In a major positive development, U.S. and China have agreed to strengthen cooperation for the first phase of the trade deal.
Any escalation in a trade war between the two biggest economies of the world will come at the worst possible time as the world economy tries to recover from the acute phase of the coronavirus crisis. Thus, positive news on the trade war front are bullish for the markets.
Shanghai Disneyland Sells All Tickets For First Days After Its Reopening
One of the biggest investor fears nowadays is that life will not return to normal for several years as consumer behavior will be altered by fears of catching a virus.
China is the first big economy that is on path to recovery from coronavirus pandemic so investors watch the behavior of Chinese consumers closely.
Shanghai Disneyland enjoyed huge demand for tickets for the park’s reopening. It should be noted that the park was mandated to cap capacity at 30% but it’s still a big success and a positive sign for the whole world which gradually lifts virus containment measures.