Strong US employment data, paired with reassuring US Federal Reserve Chairman Jerome Powell’s statements, as well as new hope in the trade dispute with China have triggered a recovery rally on the US stock exchanges. The leading index Dow Jones Industrial ended the week by 3.29 percent to 23 433.16 points.
He more than made up for his minus on Thursday. The day before, a sales warning from Apple and surprisingly weak sentiment data from the US industry had pushed the Dow by 2.8 percent down. Thanks to the healthy recovery, a weekly increase of 1.6 percent is now on the books.
The other US stock market indices also rose significantly on Friday, with the market-wide S & P 500 advancing 3.43 percent to 2531.94, and the tech-heavy Nasdaq 100 gaining 4.48 percent to 6422.67.
Chinese central bank wants to lower capital requirements
The price explosion was supported by several sides: At the beginning of the week, the first direct negotiations between China and the United States to run since US President Donald Trump in early December had announced the agreement of a mutual „ceasefire“ in the tariff dispute.
According to a message from China, a US delegation is expected to hold two-day talks on Monday. In addition, it was well-received on the global stock markets that the Chinese central bank wants to lower the capital requirements for the country’s banks once again.
Higher unemployment rate
The US itself also reported surprisingly robust labor market data for December, while Fed Chairman Powell said he wanted to „listen carefully to concerns in the financial markets.“ He emphasized the willingness to „if necessary change the accounting policy“, which worries about too fast tightening of monetary policy, the wind was removed from the sails.
In December, hourly wages continued to rise compared to the previous month, and job creation also continued. Although the unemployment rate also increased, this should, as Patrick Boldt of Helaba stressed, „not be overstated“.
