Global stocks rise as US unemployment falls with 4.8m new jobs created

"However, even if the number is trending lower, continued jobless claims over the past few weeks suggest that many job losses may become permanent as businesses struggle to reopen and unused resources and skills become outdated.

"It's also possible that a labour market recovery may be further endangered by the latest spike in infection rates in various states. In the US, demographic data from the Center for Disease Control shows that new cases in May and June are skewing towards those that are younger, rather than towards the older portion of population as seen back in April and in months prior. While daily stock market volatility in recent weeks may be influenced in part by the rising number of cases, the overall trend in stocks seems more closely aligned with deaths than new cases.

"A second wave of deaths could in turn lead to a second wave of decline for the economy, corporate earnings and the stock market. Watching the number of deaths, rather than new cases, will be critical for investors in the weeks ahead."

Neil Birrell, chief investment officer at Premier Miton, added: “The US jobs data came in much better than expected. Although, it is not as good as face value given incorrect classifications.

"But, no matter, risk assets will continue to benefit from the significantly improving economic trends as the US population gets back to work and spending.”