Better US Jobs data is now good news…..

In truth, the ECB press conference was anti-climactic and the real impetus for equities to move higher last week was the better than expected US employment situation report on Friday. Total nonfarm payroll employment increased by 321,000 in November, well above the consensus estimate for 230,000, and there was also upward revisions to previous months. Coupled with the pick-up in wage growth the narrative seems to be changing on the prospect of rate hikes, whereby more market participants believe that the economic recovery can sustain itself through a rising interest rate environment. This seems like a big leap of faith!