Positive data from the United States on jobs and corporate earnings are very good news for Wall Street, according to Mike Lenhoff, the chief strategist at Brewin Dolphin in London.
“The US equity market has at least two big pluses going for it; positive news on earnings and positive news on the job front,” said Lenhoff in a research note.
“The underlying trend for US private non-farm payrolls has the momentum indicative of an economy on a sustainable growth path and behind this lies not only good corporate news but also the Fed, which remains committed to keeping interest rates at present levels for the indefinite future,” he added.
With China slowing, Lenhoff said that if this leads to further softening of commodity prices then all the better.
Greece remains a concern for Lenhoff but as it stands, Wall Street is focused on the positives at home, not the ongoing crisis across the Atlantic, he said.
However, developments in Greece "do not look good for the markets" because its budget deficit will likely keep widening and efforts to cut it will probably be made more difficult by recession, according to Lenhoff.
“So while the outcome on the likely help for Greece is awaited, Wall Street remains focused on the growing prospect of a sustainable expansion.
China may be losing momentumbut, with the US job creation coming through, the US economy appears to be in the process of regaining momentum,” he added.