Fed doves come back in charge after soft US jobs data [Video]

Friday’s US jobs data brightened up the mood among Federal Reserve (Fed) doves, as both the NFP, unemployment rate and wages pointed at a slowing labour market in April. Stocks and bonds gained, while the US dollar weakened.

This week, the Reserve Bank of Australia (RBA) is expected to sound hawkish, while the Bank of England (BoE) could give a clearer road map regarding its easing plans. The divergence among central banks make the FX markets full of opportunities for investors.

In equities, last week’s dovish Fed pricing and better-than-expected earnings from Apple and Amazon helped the S&P500 eke out a 0.6% gain last week. The index closed last week right on its 50-DMA. Six of the Magnificent 7 stocks reported earnings so far and their results beat lofty market expectations. Beyond the Magnificent 7, 77% of the S&P 500 companies have reported a positive EPS surprise so far, according to FactSet. The blended year-over-year earnings growth rate for the S&P 500 printed a strong 5.0% – versus 3-4% expected by analysts.