Market Overview:
The 2018 year kicked off with the US Non-farm payroll data last Friday. The figure of 148,000 jobs created for the December month was below expectations of 190,000 however the unemployment rate was unchanged at 4.1%, remaining at its lowest level since December 2000 when it stood at 4%. The release saw the USD drop sharply against both the JPY and EUR, while precious metals prices jumped. However, there was relatively little movement in US stock indices with global stock indices continuing to rally as we get further into 2018. Investors continue to show little concern for high valuations (particularly across US equities) or the impact of tighter monetary policy preferring to focus on continued earnings growth and Trump’s business-friendly administration. So currently, leading on from last year, it appears there are few grey clouds to upset the current market exuberance, but it should be remembered that this bull run in equities is well extended, with every additional fresh record close-out bringing the market closer to the inevitable downside correction. Read more