Once again Larry Kudlow took the edge off the markets losses this week, his downplaying of the trade war rhetoric lifting the Dow Jones from its session lows.
Not that Kudlow has completely erased the losses suffered by the Dow and the dollar, with the index and currency both suffering with not only the continued tariff talk but a disappointing March non-farm jobs report. The headline figure came in at a woeful 103k against the stellar 326k posted the month previous, while once again the unemployment rate failed to fall to the expected 4.0%; wage growth did jump to 0.3%, but this wasn’t enough for the American instruments to properly perk up.
Instead the Dow remained down by half a percent; not quite as bad as its previously promised 200 point drop, but not great either. The greenback, meanwhile, shed 0.6% against the pound and 0.2% against the euro, falling from the day’s 3 week and one month highs respectively.
Despite the pound’s gains – it was also up 0.3% against the euro – the FTSE managed to claw its way back into the green this Friday, crawling above 7200 to sit at a 3 and a half week peak. As for the eurozone, the indices there weren’t quite as receptive to a rebound, with the DAX and CAC down – an improved – 0.4% and 0.2% respectively.
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