This is now overwhelming evidence that the economy is getting better though it isn't necessarily time yet to celebrate. The economy still has a long way to go. In the short term however, equities look a lot better and the bonds look a lot worse. All the major indices are looking up about a percent in the pre markets. Meanwhile, bonds look like they are trading somewhere near ten basis points worse. The Ten year U.S. Treasury Bond is now at 3.85%. It was below 3.50% this time last week. The yield spread between the two and ten year bond is up slightly to 2.55%. (it was 2.53% at the beginning of the day yesterday) Oil also continues to head higher and is now trading at $71.94 a barrel. A couple weeks back, oil was trading below $60 a barrel.
Equities in the Far East were mostly down. The Hang Seng in China was down 2.51%, the NIKKEI in Japan was up .23%, and the Straits Time Index in Singapore was down 2%. Meanwhile, in Europe equities were almost all up. The FTSE in London was .27%, the DAX in Germany was up 1.24%, and the Spanish index was up .89%. Only the Italian index was down and it was down .36%.
The dollar is mostly better, presumably because of the jobs report, against most other currencies. It's up by .37% against the Euro, up .21% against the British Pound, and it's up by 1.26% against the Japanese Yen.
Meanwhile, in China, officials are going to scrutinize stock gains for fears that a bubble is forming.
Chinese officials said they will scrutinize gains in stock prices without capping new lending after a record $1.1 trillion of loans in the first half added to credit risks and threatened to cause asset bubbles.
The government wants stock-market stability and is studying share-price rises, Vice Finance Minister Ding Xuedong said at a press briefing in Beijing today. The People’s Bank of China has a range of tools to limit money supply, Su Ning, a deputy governor of the central bank, told the briefing.
So, while the U.S. is mired in a recesssion, things are so booming in China that they are worried about a bubble.