On Friday last week, we saw job numbers make a surprising jump in the US, after a period of sustained losses since the coronavirus took hold around the globe. 2.5mm jobs were created instead of a loss of 9mm, predicted, and the unemployment rate fell to 13.3%, down from 14.7% in April. Consensus in the market was predicting a rate of 20% in May. Closer to home, Canada also added 300,000 jobs, again taking a number of economists and analysts by surprise.
Equity markets reacted positively, and treasuries sold off as traders eyed optimism in the months ahead.
This news translated well across the globe to Asia. Overnight, Japan GDP figures contracted by 2.2%, but this was much better than the 3.4% predicted. Beijing saw a record trade surplus and while exports shrank, it was far less than expected. This was much to do with the manufacture and sale of medical supplies.
As we look at the week ahead, we will see more trade numbers and economic updates. These include German GDP and trade balance; UK retail numbers; Mexican and Brazilian CPI numbers; EU industrial production and Canada housing stats.