Stock markets rallied yesterday as the US avoided a catastrophic debt default and traders responded positively to a report showing a surge in American jobs. The FTSE 100 rose by 1.6 per cent, or 117.01 points, to 7607.28, reversing losses earlier in the week. Investors were breathing a sigh of relief after the US Senate approved a deal that lifted the £25trillion ceiling on America's public debt. The deal was backed by Senate leader Chuck Schumer, which ended those fears and left investors feeling more positive. Stronger-than-expected jobs growth would be seen as adding to inflation pressures, something that would put pressure on the Fed to hike again, in turn putting pressure on borrowers.

Source: Daily Mail June 03, 2023 08:38 UTC