Rolling coverage of the latest economic and financial news
- Iron ore and copper both at new peaks
- China reports strong trade growth in April
- US jobs report: Economists predict one million new hires
- Yesterday: UK set for strongest economic growth since WW
The UK’s blue-chip share index has hit a new 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.
Commodity prices are surging again today, as the economic recovery creates a scramble for raw materials.
Both iron ore and copper prices have hit record levels today, extending a rally in commodities.
Iron ore at record high. pic.twitter.com/oUG7WtlV75
The most-liquid September iron ore on China’s Dalian Commodity Exchange leapt 5.3% to 1,214 yuan ($187.94) a tonne by 0330 GMT, after earlier touching a high of 1,217.50 yuan.
Three-month copper on the London Metal Exchange was up 1.2% at $10,209 a tonne by 0503 GMT, after rising 1.4% earlier to hit an all-time high of $10,232. The contract has leapt 133% since March last year, when demand was hit by the coronavirus pandemic.
And there we have it: copper at new record highs above $10,200. pic.twitter.com/pbMNAeNJXn
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.
#China’s trade surges in April:
√ exports jumped >7% m/m to an amazing 33% above 6-year trend
√ imports up >5% m/m and are now 30% above 6-year trend (33% above pre-pandemic level), confirming a rotation in the growth drivers towards domestic demand pic.twitter.com/c1sJ4zb4FC
“China’s export growth again surprised on the upside,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that two factors – the booming U.S. economy and the COVID-19 crisis in India, causing some orders to shift to China – likely contributed to the strong export growth.
“We expect China’s export growth will stay strong into the second half of this year, as the two factors above will likely continue to favour Chinese manufacturers. Exports will be a key pillar for growth in China this year.”
China posts rapid trade growth in April as recovery races ahead https://t.co/k6b4jBpYB4
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
After the Bank of England hiked its growth forecasts yesterday, investors are looking to the latest US jobs report for confirmation that the economic recovery is gathering pace.
After a surprisingly large jobs gain last month, we think the US is poised for a repeat performance as the economic re-opening gathers momentum. We are forecasting an April non-farm payrolls increase of just north of 1 million.
We know per recent qualitative data that companies are starved for employees at the moment, and that is evident in both ISM reports and in the Fed’s Beige Book.
But on average, economists are expecting a blowout payrolls number of at least 1 million.
Nomura chief economist Lewis Alexander said market participants should brace for a “monster U.S. payroll number” this week, driven in large part by advances in some of the industries hardest-hit by the pandemic. Leisure and hospitality payrolls are still down by 3.3 million compared to February 2020 levels, but have been making some of the largest gains over the past several months to try and lessen this deficit.
“A monster US payroll number… We expect US NFPs to well exceed 1m jobs in April” – Nomura