The S&P 500 closed 0.7% higher yesterday, posting its third consecutive day of gains for the first time since early March with markets seemingly ignoring US President Trump’s threat to introduce tariffs on a further $100bn of Chinese imports. However the Dollar was unable to extend its gains against major currencies overnight and focus may temporarily switch away from the trade tit-for-tat between the US and China to US March employment data out later today and Federal Reserve Chairperson Powell’s speech. Headline non-farm payrolls, which on average have risen nearly 200,000 per month since early 2017, typically get the most attention. But with the US labour market nearing full-employment, the underlying hourly and weekly earnings numbers may prove more interesting in the context of the Fed’s rate-hiking path and markets’ reaction.
