US stocks triggered a global rally overnight following a crucial US jobs report that showed wage growth slowed in December, fuelling speculation the slowdown will keep the Fed at bay from intensifying its battle with inflation. The Dow Jones closed up 701 points (+2.13%). At best it was up 781 points, and at worst it was up 67 points. The NASDAQ rose 2.56%, and the S&P 500 finished 2.28% lower. In Europe, STOXX 600 +1.16%, FTSE +0.87%, CAC +1.47%, DAX +1.20%.

• 200K non-farm payolls number versus 263,000 in November.
• "Softening trend" taken positively.
• Lower than expected (225K expected).
• Unemployment rate at a new low of 3.5%.
• Average hourly earnings up 4.6% in December down from 4.8% in November.
• The US dollar dropped sharply.
• US bond yields fell.
• The equity markets bounced setting a new hope for a market rally this month based on an inflation peak.

Commodities – Most commodities rallied overnight following the US jobs report. All base metals up with copper and aluminium finishing highest up 2.38% and 2.3%. Copper hits a three-week high due to a weaker dollar recovering some of Thursday’s losses after falling 6.8%. A weaker dollar makes commodities priced in USD cheaper for buyers using other currencies. Iron ore up 1.42% on optimism around China stepping up support for its struggling domestic property sector. Oil prices mixed, brent crude down 0.23% and WTI up 0.22%. Gold rose sharply up 1.78%, seeing a seven-month high as treasury yields fell. Resource stocks BHP and RIO both up 4.28% and 2.95% in ADR terms. Bitcoin steady up 0.23%.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.