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US Employment

Job numbers rebounded in April according to figures out this morning and the US unemployment rate fell to its lowest level in seven years - 5.4 per cent. Payrolls rose 223,000 in April, but the March figure was revised down to 85,000. Most importantly the quick consensus from Wall Street analysts was that while the report was good, it wasn't good enough to force the US Federal Reserve to hike rates before September, which is when most of them think rates will start rising this year. The senior global strategist at Wells Fargo Investment Institute, Scott Wren, summed it up for Marketwatch: "It was a healthy jobs number, indicating the economy is doing OK, but it's unlikely to sway the Federal Reserve too much." As a result, the stock market had a big session, with the S&P 500 up 1.3 per cent and the Dow up 1.5 per cent. Of course the other reason markets went for a run last night is the result of the UK election. Apparently all the Tory voters were shy and didn't tell the pollsters what they were doing, so Cameron's victory was a big surprise. The FTSE in London jumped 2.3 per cent as a result and that mood more than spread to Europe, where the Euro Stoxx 50 was up a remarkable 2.8 per cent. And you may be pleased to know that there was a surge in bond prices as well - yields fell across the board, but especially in Germany. All of which augers pretty well for decent gains on the Australian market.

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