China, Brexit, and the US labor market indicators are the main driving force of the market.

The past week was marked by relatively good performance in the US labor market amid the ongoing pandemic. Investors didn’t perceive the decrease in the growth of employed people negatively, since the record numbers of the infected make the players ready for anything. Moreover, the rest of the indicators came out not so bad. A decrease in the unemployment rate and an increase in wages is quite capable of leveling the temporary slowdown in the labor market. The market reacted to the data quite logically.

US Treasuries showed strong growth dynamics in yields to 0.973%, reflecting inflation expectations. The 2-year bonds reacted slightly, as the FRS will not consider raising rates over the long term, even in the context of higher inflation rates. Taken together, the credit market reflects calm. The difference between 2-year and 10-year bonds has widened significantly, indicating a renewed appetite for the risk in the near future.

China is also demonstrating its strength. The slowdown in imports to 4.5% in November and the acceleration in export growth to 21.1% directly indicate GDP growth in the fourth quarter. For investors, this is like a headache pill amid rising morbidity and friction in the Brexit negotiations.

Market indicators

European and American indices are trading in the red zone.

S&P 500 (F) 3.683.88 -14.12 -0.38%

Dow Jones 30.218.26 +248.74 +0.83%