Economics weekly by Lloyds TSB

Last week ended on a positive note, with financial markets taking heart that US employment fell less than anticipated, despite severe weather conditions in parts of the country, and hopeful of a return to positive jobs growth next month

Last week ended on a positive note, with financial markets taking heart that US employment fell less than anticipated, despite severe weather conditions in parts of the country, and hopeful of a return to positive jobs growth next month. Indeed, the FTSE-100 index tested 5,600, a level it has not closed above since September 2008. Bond yields and swap rates rose, with sterling 5yr swaps back above 3%, while initial positive reaction for the US dollar gave way to rises in other major currencies, perhaps on hopes of a broader global economic recovery.

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