Market Comment | Soft US jobs data tempers risk-on revival

Summary

Markets extended the last year-end rally after US-Iran geopolitical tensions moderated. Investors’ risk appetite improved, underpinned by encouraging economic data, confirmation of the US-China Phase One trade deal next week, and the conviction that central banks stand ready to act if needed.

Key points

• Key points:
• US labor markets lost some steam in December but remained solid, while France’s industrial production showed limited impact from protests
• Sovereign yields recovered from declines early in the week, although weaker payroll weighed
• The appreciation of the euro as seen since late last year lost some steam
• US equity markets hit a new record high

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