On Friday U.S. job growth beat economists’ expectations in June, as Non-farm payrolls increased by 287,000 jobs in the biggest gain since October last year. Expectations had been for an increase of only 175,000 jobs. May payrolls were revised down, to show a rise of 11,000 rather than the previously reported 38,000.The unemployment rate rose to 4.9%, however this is because more people entered the labour market and this is a sign of confidence.
Signs of strength in the US economy so far precede Britain’s vote to leave the EU. While the payrolls number shows that the economy is on a decent footing, it is unlikely to affect the Federal Reserve’s intention to wait for more data showing the impact of Brexit before making a decision on interest rates.
An YouGov opinion poll published on Friday showed that voters in Germany, France, Sweden and Finland believe that Britain should not be given a generous deal when it tries to renegotiate its ties with the European Union. Germany and France were the most against helping Britain, with 53 percent of respondents in both countries saying that it should not expect any favours compared with 27 percent who said the EU should offer Britain a generous deal.European markets remain nervous, with worries about systemic risk in the Banks due to Brexit and credit risks from Italy weighing in.
No key announcements today