Wall Street rises as data points to accelerating economy

"For confirmation that the USA dollar may weaken further on this, we are watching U.S. yields as the low for the cycle in the 10-year comes into view around 2.16%".

The ISM manufacturing index edged higher to 54.9 from 54.8 the previous month which continued to suggest solid progress in the industrial sector.

"A hike in June is still on the table but the news flow will have to improve for the Fed to keep tightening in the second part of the year", said Thomas Julien, U.S. economist, at Natixis North America in NY.

USA private employers stepped up hiring in May, signalling that the labour market was rapidly tightening amid a firming economy, which could encourage the Federal Reserve to raise interest rates later this month.

There appeared to be little market reaction to President Donald Trump's announcement that the United States would be withdrawing from the Paris global climate agreement, because trading closed while Mr Trump was still speaking. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12 percent of the USA economy.

A separate report showed factory activity ticked up in May after two straight months of slowing. On the data front, Canada's trade deficit in April narrowed to C$370 million ($274 million) as exports outpaced imports for a second month in a row to hit a new record high on shipments of motor vehicles and parts, Statistics Canada said on Friday.

While the U.S. economy added 138,000 jobs in May, missing economist forecasts of 182,000, that disappointment was at least partially offset by the unemployment rate continuing to fall.

USA stocks advanced on Thursday, with the major indexes notching record highs after the ADP private sector employment report showed 253,000 jobs were added in May, well above the 185,000 rise expected.

Traders and investors are looking forward to Friday morning's USA employment report for May from the Labor Department. Headline unemployment fell to 4.3% from 4.4% the BLS said, but the Labor Force Participation rate, a measure of the broader American workforce, slipped to 62.7% from 62.9%.

The U.S. central bank raised interest rates by 25 basis points in March.

Wall Street advanced on Thursday, with each of the major U.S. indexes closing at record highs, after a batch of economic data helped to bolster confidence in the economy ahead of Friday's closely watched jobs report.

A Labour Department official said claims for California and seven other states were estimated because of the Memorial Day holiday on Monday, which could have distorted the data.

The US currency stabilised in Asian trading on Thursday which curbed further support for gold prices, especially with a firm tone in equity markets. The euro rose against the dollar on Friday as the dollar declined after disappointing U.S.jobs growth data. Almost 40 percent of the job cuts were announced by Ford Motor Co (F.N), according to the report.

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