US stocks hit new highs as strong jobs data underscores economic resilience

US stocks moved higher on Thursday, buoyed by fresh signs of strength in the labour market, which reinforced the perception of a resilient economy. The three major indices gained between 0.60% and 1%, with both the S&P 500 and the Nasdaq reaching new record highs. Non-farm payrolls rose by 147 000 in June, surpassing expectations of a 110 000 increase, while the unemployment rate unexpectedly fell to 4.10%. The stronger-than-anticipated data pushed back against concerns that tariffs and economic uncertainty had begun to weigh on employment, highlighting the underlying robustness of the US economy.

The South African rand strengthened on Thursday, buoyed by renewed optimism among global investors over the trajectory of trade negotiations with the United States. Sentiment improved after Washington signed a trade agreement with Vietnam, raising hopes that further deals could follow ahead of the 9 July deadline set by the US. By 15h56 GMT, the rand was trading at 17.4950 against the US dollar, gaining approximately 0.50% from Wednesday’s close and marking its strongest level so far this year. In tandem with the currency's advance, South Africa’s main stock market index, the SAALL, rose by 0.34% to 96 937 points, extending gains from the previous session.

In the UK, the FTSE 100 rebounded on Thursday, recovering ground lost in the prior session after Prime Minister Keir Starmer and Chancellor Rachel Reeves moved to reassure markets with a renewed commitment to fiscal discipline and economic stability. Their comments boosted investor confidence, lifting both gilt yields and the pound. However, equity gains were partially trimmed later in the day following the release of the strong US jobs report, which shifted expectations around global monetary policy.

Across the eurozone, equities edged higher for a second consecutive session, with the STOXX 50 up 0.20% and the broader STOXX 600 rising 0.30%. Optimism was underpinned by easing trade tensions, particularly after the US announced the removal of certain export restrictions on chip design tools to China—a gesture seen as a potential step towards a broader trade truce.

In Japan, the Nikkei 225 rose marginally by 0.06% to close at 39 786, while the Topix Index gained 0.10% to 2 829, snapping a two-day losing streak. Sentiment improved as Japanese officials reiterated their intention to pursue a “win-win” trade agreement with the US, though they offered few details on what concessions might be involved.

Chinese markets followed suit, with tech shares leading the gains. The Shenzhen Component Index advanced 1.17% to finish at 10 535, following reports that the US had relaxed certain restrictions on the export of chip design software to China. This marked a reversal of measures introduced in May, when US authorities had required semiconductor software firms to seek licences before supplying key tools to Chinese counterparts.

In commodities, WTI crude oil futures slipped below $67 per barrel, retreating from recent gains amid a rise in US crude inventories, which raised fresh concerns over softening demand. Meanwhile, gold prices fell to $3 320 per ounce, down from an earlier peak of $3,365, as stronger US labour market data dampened expectations of a more dovish stance from the Federal Reserve.