Daily summary: Strong labor market fuels risk appetite among investors 📈

U.S. indices are finishing the week higher after better-than-expected data from the U.S. labor market. The biggest gains are seen in the small-cap Russell 2000 index (+1.3%), followed by the Nasdaq (+1.1%), S&P 500 (+0.8%), and DJIA (+0.75%).

In May, the U.S. added 139,000 new jobs, according to the NFP report (forecast: 125k; previous: 147k). The unemployment rate held at 4.2%, and wages surprisingly rose compared to May 2024 (+3.9% y/y; forecast: 3.7%, previous: 3.8%).

Tesla shares are rebounding by about 5.3% after tensions between Elon Musk and Donald Trump cooled down. The stock had plunged nearly 19% by the end of yesterday’s session.

European markets mostly posted gains. The French CAC40 rose (+0.19%), as did the British FTSE 100 (+0.31%), Italian FTSE MIB (+0.55%), Spanish IBX35 (+0.31%), and Swiss SMI (+0.39%). The German DAX saw a slight pullback (-0.08%).

The Warsaw Stock Exchange (GPW) is the weakest market in Europe today, mainly due to a sell-off in the financial sector (WIG20: -1.26%; WIG-Banks: -1.78%).

Eurozone GDP growth reached 0.6% q/q in Q1 2025 (forecast: 0.3%, previous: 0.2%), while retail sales slowed compared to the previous month (0.1% m/m vs. 0.4% previously).

On the forex market, the dollar is seeing relief, rebounding against all G10 currencies today. The Japanese yen is losing the most (USDJPY: +0.95%), while the Canadian dollar shows resilience (USDCAD: +0.16%), also supported by a strong employment report. EURUSD has fallen back below 1.14, dropping 0.45% to 1.139.

The inflow of capital into risk assets has triggered a sell-off in the gold market, which is down 0.90% to $3,320 per ounce. Silver, on the other hand, extends gains by 1% to $36 per ounce.

Cryptocurrencies are also benefiting from the upbeat sentiment in equities and are posting gains. Bitcoin rebounds 3% to $104,500, Ethereum gains 3.10% to $2,490, and other projects are recording similar average results.

Next week, the Senate is expected to hold a final vote on the stablecoin bill. According to the latest reports, Republicans have successfully implemented amendments required by Democrats. As a result, there is a strong likelihood that the bill will pass in the Senate with bipartisan support.