Global stocks surged over the week on relative clarity over US election results. Stocks posted their best week since April. The S&P 500 jumped 7.3% and the Dow surged 6.9% for the week. Abroad, the FTSE All World Ex US soared 7.5% for the week. The yield on the 10-year Treasury declined to end the week at 0.82%.
US employers added 638,000 jobs in October well surpassing expectations. The unemployment rate fell to 6.9%, when it was expected to be 7.7%. New jobless claims fell to 751,000, the lowest level since March, but the pace of declines has significantly leveled off. The labor market has regained over half of the 22 million jobs lost in March and April.
Factory activity expanded at a faster clip than expected in October and posted a sixth month of expansion.
The eurozone Purchasing Managers Index picked up pace in October and hit a 27-month high.
The Fed’s November meeting concluded with no changes in policy. They still said the coronavirus posed significant risks to the US economy, recommending additional fiscal stimulus, and they maintained their existing monetary stimulus measures.
The Bank of England, Bank of Australia and ECB all announced additional monetary stimulus measures.