US employment data for April stronger than expected
April’s US non-farm payroll numbers have come in higher than expected, as the economy added 177,000 new jobs in April, compared with a forecast of 130,000.
This is however lower than the 185,000 jobs created in March (which was revised down from 228,000).
The employment rate is unchanged at 4.2%.
Key events
US markets have opened higher after US jobs data came in higher
US stock markets have opened higher following US non-farm payrolls data, tracking European gains.
The tech-focussed Nasdaq was 1.1% up, while the Dow Jones Industrial Average was around 1.2% higher and the S&P 500 was about 1.1% up on Friday in morning trading.
The moves track gains in Europe, as traders breathed a sigh of relief after US jobs data came in better-than-expected (but still showed a slowdown in hiring compared with a month) and amid hopes that a relations between the US and China.
After the non-farm payrolls report, traders bet that the Fed will now wait until July to start cutting interest rates. Earlier, they had predicted that a move was more likely in June.
TikTok fined €530m by EU privacy regulator for sending user data to China
In other news, TikTok has been fined €530m (£450m) by Ireland’s Data Protection Commissioner (DPC) over concerns how it protects user information. It has also been ordered to suspend transfers of data of TikTok users in the EU to China if its processing is not brought into compliance within six months.
Photograph: Dado Ruvić/Reuters
The DPC said that TikTok, owned by China’s ByteDance, failed to show that EU users’ personal data, some of which is remotely accessed by staff in China, was afforded the high level of protection which is provided for under EU law’s GDPR regulations.
DPC Deputy Commissioner Graham Doyle commented:
“As a result of TikTok’s failure to undertake the necessary assessments, TikTok did not address potential access by Chinese authorities to EEA personal data under Chinese anti-terrorism, counter-espionage and other laws identified by TikTok as materially diverging from EU standards.
TikTok has strongly contested the finding and said it planned to appeal. The company said it had used the EU’s own legal framework, in so-called standard contractual clauses, to grant tightly controlled and limited remote access. It said that EU user data is stored in dedicated data centres in Europe and the US.
The US jobs figures for April was higher than forecast, but still means that hiring in the country slowed last month, according to official figures.
The workforce added 177,000 jobs as Donald Trump’s aggressive trade strategy clouded the economic outlook.
As the White House pressed ahead with sweeping tariffs on overseas imports, claiming this would revitalise the US economy, employers across the country continued to add jobs at a steady pace.
The April reading is down from the revised 185,000 jobs reported for March – and above the 133,000 expected by economists. The unemployment rate was unchanged at 4.2%.
While April’s hiring was stronger than predicted, the Bureau of Labor Statistics also shaved 58,000 off its tallies for February and March’s gains. April’s largest hiring gains were in healthcare and transportation and warehousing.
Federal government employment declined by 9,000 in April as the Elon Musk-led “department of government efficiency” continued to cut government workers. Federal employment has fallen by 26,000 since January.
The jobs report came days after official figures showed the US economy shrank by 0.3% in the first quarter of the year.
You can read more from my colleague Michael Sainato here:
Markets extend their gains after positive US jobs data
European markets have extended their earlier gains after the US non-farm payroll report came in stronger than expected.
The major indices in the UK, France and Germany were already trading higher on hopes that trade tensions between the US and China are thawing.
The UK’s FTSE 100 is now 1.1% higher, Germany’s DAX is up 2% and France’s CAC 40 is 1.8% higher.
Gains earlier on Friday appeared to be a reaction to China’s government saying it is “evaluating” US approaches for trade talks.
US employment data for April stronger than expected
April’s US non-farm payroll numbers have come in higher than expected, as the economy added 177,000 new jobs in April, compared with a forecast of 130,000.
This is however lower than the 185,000 jobs created in March (which was revised down from 228,000).
The employment rate is unchanged at 4.2%.
European markets trading higher at lunchtime as fears of trade wars subside
A quick lunchtime look at the European stock markets before that crucial US jobs data is released.
France’s CAC 40 was nearly 1.6% higher a few moments ago.
London’s FTSE 100 is currently 0.8% up.
And Germany’s DAX is trading 1.83% higher.
Markets will of course be closely watching the upcoming US employment data, due in a few minutes.
US employment data expected shortly
The markets are poised for US non-farm payrolls to land shortly, with analysts forecasting they will rise by 130,000 in April, lower than the 228,000 gain seen in March.
The statistics will be published by the US Bureau of Labor Statistics.
The jobs report is always closely watched – and especially so at the moment – given the focus on the US economy amid the White House’s flip-flopping on tariff policies.
The outcome of the jobs report could impact the chances of whether the US Federal Reserve will choose to cut rates in June.
The numbers follows hot on the heels of Wednesday’s figures which showed the US economy shrank in the first quarter of the year.
Gross domestic product (GDP), a key measure of the US economy, contracted by 0.3% in the first quarter of the year, down from growth of 2.4% in the last quarter of 2024.
The drop in activity also came amid a huge fall in US consumer sentiment in April, and disappointing quarterly results in recent days from some US corporate giants including McDonald’s and Starbucks.
RAF’s new StormShroud drones designed to jam enemy radars come into operation
British-made StormShroud autonomous drones are entering operation today with the Royal Air Force (RAF).
They are fitted with high-tech signal jammers which are designed to disrupt enemy at long range and will fly alongside RAF aircraft on missions.
The government has invested an initial £19m into the drones, which are made in the UK, supporting 200 engineering jobs at multiple locations from West Wales to Somerset, while further opportunities are expected in future. It comes as the government has pledged to ramp up defence spending.
No 10 said the technology took “advantage of learnings from countering Putin’s illegal war in Ukraine”.
The drones are manufactured in the UK by British-Portuguese tech company Tekever, while the BriteStorm signal jammer they are equipped with is manufactured by the Italian defence company Leonardo in Luton. The site was visited by Keir Starmer on Friday.
Tekever has said it will invest a further £400 million over the next 5 years across the UK to create up to 1,000 highly skilled jobs.
The drones support RAF aircraft like Typhoon and F35 Lightning by confusing enemy radars, allowing combat aircraft to attack targets unseen.
M&S boss urges shoppers to visit stores amid hack fallout
The boss of Marks & Spencer has urged customers to come into its stores to shop in person this bank holiday weekend as the retailer works “day and night” to tackle the cyber-attack that has crippled its online operation.
The retailer’s IT systems were hit by a major ransomware attack almost two weeks ago. It is still not taking online orders, and the availability of some products in its stores has been affected after it took some of its systems offline in response.
“We are really sorry that we’ve not been able to offer you the service you expect from M&S over the last week,’ said the chief executive, Stuart Machin, in a post to customers on LinkedIn.
We are working day and night to manage the current cyber incident and get things back to normal for you as quickly as possible.
Our teams are doing the very best they can, and are ready to welcome you into our stores – whether you are shopping for food or for fashion, home and beauty this bank holiday weekend.
You can read the full report here:
UK considers banning borrowing to buy cryptocurrencies
The UK is considering banning borrowing to invest in cryptocurrencies like bitcoin, amid concerns that it could lead people into a debt spiral.
The Financial Conduct Authority (FCA) shared details of a potential clampdown on cryptoassets, including forcing companies to be based in the UK if they deal with UK customers.
In a discussion paper published on Friday, the FCA said:
we are exploring whether it would be appropriate to restrict firms from accepting credit as a means for consumers to buy cryptoassets. We are considering a range of restrictions, including restricting the use of credit cards to directly buy cryptoassets, and using a credit line provided by an e-money firm to do so.
Retail investors would also be blocked from accessing crypto lenders, which come with a lot of complicated risks.
David Geale, FCA executive director of payments and digital finance, said, in an interview with the Financial Times:
Crypto is an area of potential growth for the UK but it has to be done right. To do that we have to provide an appropriate level of protection.
The higher reading in eurozone services inflation may be a fly in the ointment for the European Central Bank as it considers cutting interest rates further.
The ECB has cut interest rates three times in 2025 so far – and six times in a row – with another two cuts expected for this year. Higher inflationary pressure indicated by services prices rising could give some policymakers pause.
However, Franziska Palmas, senior Europe economist at Capital Economics, a consultancy, said it should not be too tricky:
April’s rise in services inflation is unlikely to worry ECB officials too much as it was probably driven mainly by Easter timing effects. We think services inflation will start falling again in the coming months and that US tariffs will prove disinflationary for the euro-zone, paving the way for two more rate cuts this year.
Eurozone unemployment edging up slightly could also support the case for cutting rates.
