Stock rally continues as new US debt ceiling is agreed and US non-farm payrolls rise


Stocks added to Thursday's gains as the US government agreed a new debt ceiling, says Axel Rudolph, Senior Market Analyst at online trading platform IG.

Stocks rally further on new US debt ceiling agreement

“Global stock markets ended the week on a more positive note as the US government agreed to a raised debt ceiling. Much stronger-than-expected US job creation data points to a robust economy even if the unemployment rate rose to a higher-than-expected 3.7%.”

US job creation looks robust but unemployment rises

“Following a much stronger-than-anticipated ADP private payrolls report on Thursday, Friday's Non-Farm Payrolls came in at nearly twice to what was expected. Instead of the widely projected 190k added jobs, 339k were created in May and the April figure upwardly revised to 294k. Average hourly earnings came in as expected at 0.3% but the unemployment rate unexpectedly rose to 3.7% instead of a forecast 3.5%. Stock indices and the oil price continued to rally into the end of the week while the US dollar halted yesterday's decline and gold gave back some of this week's gains.”

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