Global stock markets posted gains at the close of trade on Friday, as US jobs data eased concerns about the danger of recession in the world's biggest economy.
Wall Street, in particular, had a double dose of confidence as technology bellwether Apple beat revenue estimates thanks to healthy sales of its flagship iPhone, sending the Dow Jones Industrial Average to its best single-day percentage gain in four months.
Employers in the US hired more workers in April, with non-farm payrolls rising by 253,000 last month, the Labour Department's employment report showed on Friday.
That was well above the 180,000 consensus forecast from a survey of analysts conducted by Reuters.
The US unemployment rate inched down to 3.4 per cent in April, from 3.5 per cent the month before. March data was also revised lower to 165,000 jobs, from a previous figure of 236,000.
Apple, meanwhile, said this week that revenue hit $94.8 billion in its fiscal second quarter. Although that was down 2.5 per cent annually, it still beat analyst estimates of $92.6 billion and the company's projection of a 5 per cent decline.
That sent the California-based company's stock surging, closing up nearly 4.7 per cent on Friday.
April's jobs data suggests a resilient labour market despite the Federal Reserve's consecutive interest rate rises. However, this could also lead the US central bank to keep high interest rates for longer.
“Non-farm payrolls rising over March’s figures — and beating estimates for a 13th consecutive month — shows that the US job market continues to resist the tightened fiscal policy from the Federal Reserve,” said Srijan Katyal, global head of strategy and trading services at Abu Dhabi-based brokerage ADSS.
“Although a cut to interest rates is almost completely off the table at the Fed’s next FOMC [Federal Open Market Committee] meeting, this stronger-than-expected data may give cause to push forward with another limited 25-basis-point rise before pausing interest rate raises.”
On Wall Street, the Dow rose 1.65 per cent, its biggest daily rise since January 6, at the close of trading. The S&P 500 added 1.85 per cent and the tech-heavy Nasdaq Composite gained 2.25 per cent.
The Fed this week raised interest rates for the 10th time since 2022. The resilient US jobs market, however, does not mean another rate rise is a certainty when the Fed meets again in July, said Chicago Fed president Austan Goolsbee.
“We know that credit conditions like the ones we are seeing now in the past have been correlated with recessions, credit crunches. It's way too premature to know what to do with monetary policy,” he told Fox News on Friday.
In Europe, London's FTSE 100 settled 1 per cent higher, Frankfurt's DAX rose 1.4 per cent, and Paris's CAC-40 added 1.3 per cent.
Earlier in Asia, Hong Kong's Hang Seng index closed 0.5 per cent higher, boosted by technology and property stocks. The Tokyo bourse was closed for a holiday.
The Shanghai Composite, meanwhile, retreated 0.5 per cent, as investors were concerned about the uneven economic recovery in China, which is still emerging from its strict Covid lockdowns.
In commodities, oil prices closed sharply higher on Friday but still posted a third consecutive week of losses on signs of weakening global crude demand.
Brent surged 3.86 per cent, or $2.80, to settle at $75.30 a barrel, while West Texas Intermediate jumped up 4.05 per cent, or $2.78, to close at $71.34 a barrel.
For the week, however, Brent lost 5.3 per cent, while WTI slipped 7.1 per cent.
Gold, meanwhile, added about 1.6 per cent, or $30.90, to settle at $2,024.80 an ounce.
Demand for the precious metal, used as a hedge against inflation, rose by 18 per cent in 2022 to an 11-year high of 4,741 tonnes, driven by retail investors and central banks shoring up their bullion reserves, the World Gold Council previously reported.
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Results
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
