US stocks are driving higher due to the weaker-than-expected manufacturing data as traders are taking the view that bad news for the economy is good news for the stock market.
Stock markets in Europe closed higher today following a difficult week, as the drop in UK, German and French bond yields supported equities.
Sterling remains the talk of the town as the Bank of England purchased long-dated gilts as a way of keeping yields under control.
The oil price has seen colossal price swings in the past two and half years. At the lockdowns were introduced in 2020 as a reaction to the pandemic, the oil market tumbled as demand fears accelerated. In February 2020, WTI was trading in the region of $45 and by late April oil futures traded below zero as dealers rushed to exit the market.
US recession fears are back in focus as the flash services PMI report dropped to 44.1, the lowest report since May 2020.
The strong US jobs report renewed fears about further large interest rate hikes from the Federal Reserve, which is why equity markets are lower.
European stock markets are suffering as there are fears the continent is going down a gear in terms of growth.
The dollar's performance varied at the beginning of the week against the major currencies in the markets after the release of US jobs data.
Stocks are largely in positive territory as traders continue to shake off the headlines about the rising number of patients with the omicron variant of the Covid-19 virus.
The mood in the markets today is very different to what was seen last Friday when traders were running for the hills due to renewed concerns about the pandemic.
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