Global stock markets gain on US jobs data, tariff talks hopes

Global stock markets rose on Friday as jobs data reassured investors on the US economy, as did indications Beijing and Washington may begin to talk about resolving their tariff standoff.

Data showed that US hiring slowed much less than expected last month, with the world’s largest economy adding 177,000 jobs.

European equities and US stock futures both jumped following the release of the data. Wall Street’s main indices gained around one percent at the opening bell and held onto their gains during morning trading.

“The April jobs report may reassure investors that the labour market is holding up, giving them more confidence that the economy can hold up too,” said Bret Kenwell, analyst at trading platform eToro.

Data released Thursday showed the US economy unexpectedly contracted in the first three months of the year on an import surge triggered by US Donald Trump’s tariff plans. Falling US consumer confidence and rising jobless numbers have also caused angst among investors.

But XTB research director Kathleen Brooks said: “The market has been pricing out the prospect of US political risk from equities, as the news flow around tariffs remains positive.”

The monthly US jobs data is also important for investors looking for indications of the US central bank’s path for interest rates, and a smaller-than-expected monthly increase in wages should reassure the Federal Reserve on inflationary pressures in the labour market.

Meanwhile, China’s commerce ministry on Friday said it was evaluating a US offer for negotiations on tariffs, but insisted Washington must be ready to scrap levies that have roiled global markets and supply chains.

Trump’s levies reached 145 per cent on many Chinese products in April, while Beijing has responded with fresh 125-per cent duties on imports from the United States.

Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”.

The US president has also imposed 10 per cent tariffs on imports from around the world. Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.

Deutsche Bank managing director Jim Reid said the Chinese statement “is outweighing concerns about the effect of tariffs, which were initially triggered by disappointing earnings from Apple and Amazon”.

US tech giants Apple and Amazon both reported disappointing outlooks, as tariffs knock business confidence, after markets closed on Thursday.

Shares in Apple slumped around five percent and Amazon around one percent as Wall Street opened on Friday, but pared their losses during morning trading.

In Europe, Paris and Frankfurt rose over two percent as markets brushed off official data showing eurozone inflation remained unchanged at slightly above the European Central Bank’s two-percent target.

London also gained, with mining and commodity stocks -- sensitive to Chinese demand -- performing particularly well amid optimism for potential China-US talks, according to analysts.

In Asia on Friday, Hong Kong was up more than 1.7 percent at the close, while Tokyo rose one percent.

Japan’s envoy for US tariff talks said in Washington on Thursday that a second round of negotiations between the two countries had been “frank and constructive”.

The Bank of Japan warned earlier that tariffs were fuelling global economic uncertainty and revised down its growth forecasts while keeping its key interest rate steady.

Meanwhile, gold edged higher on Friday, after hitting a two-week low in the previous session, but easing trade tensions and a strong jobs report kept prices on track for a second consecutive weekly loss.

Spot gold was up 0.5% at $3,255.01 an ounce as of 9:41am, after hitting its lowest since April 14 on Thursday. Prices were down 2.1% for the week, after hitting a record high of $3,500.05 on April 22.

US gold futures rose 1.3% to $3,262.10.

“Gold looks like $3,500 may be a top for a little while, especially if some trade deals start to come through and some risk on appetite starts to break through the kind of negative euphoria that we’ve been seeing since the tariff talks,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Gold prices briefly pared gains earlier in the session after data showed nonfarm payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March.

Traders trimmed bets that the Federal Reserve will cut rates as soon as June after the jobs report.

Yield on benchmark 10-year Treasury bonds rose. Higher interest rates tend to make non-yielding bullion less appealing to investors.

Spot silver edged 0.1% lower to $32.35 an ounce, platinum rose 1% to $967.70, and palladium gained 0.9% to $949.00.

Agencies