After the Bank of England upped its growth forecasts yesterday, investors are looking to the latest US jobs report for confirmation that the economic recovery is gathering pace. Today’s non-farm payroll is expected to be strong, with perhaps 1m Americans finding work in April. That would be the strongest jobs growth since last August, up from the 916,000 hired in March. Economists also predict the US unemployment rate will tick down to 5.8%, from 6%, as the labour force recovers. Yesterday, weekly US jobless claims dropped to a pandemic low. However, economists have estimated that US economy was still roughly 8m jobs short of its pre-pandemic levels, so the recovery isn’t complete. China has reported strong trade growth today, highlighting how its economy is strengthening. Chinese exports rose 32.3% year on year in April to almost $264bn, slightly faster than in March. Imports jumped, too, up 43.1% compared with a year ago, to $221.1 billion – accelerating from March’s 38.1% expansion. Commodity prices are surging again today, as the economic recovery creates a scramble for raw materials. Iron ore and copper prices have hit record levels, extending a rally in commodities. The strong trade data from China overnight, and the prospect of a very strong US jobs report later today, are boosting demand. The benchmark S&P Global Platts Iodex, which tracks the spot price of iron fines delivered to China, hit a record high of $202.65 per dry metric ton. The UK’s blue-chip share index has hit a 14-month high in early trading. The FTSE 100 jumped 37 points to 7113 points as it continues to rally on hopes of an economic rebound this year. The agenda • 9.30am BST: UK construction PMI for April • 1pm BST: US non-farm payroll report for April We’ll be tracking all the main events throughout the day ... |