There was further good news from the US economy, with the country adding 295,000 jobs in February, the 12th consecutive month that has seen over 200,000 positions created. The figures were higher than analyst expectations and also helped the unemployment rate fall from 5.7% to 5.5%. While the number of US mining jobs fell in February, the figures were boosted by hiring in food & drink outlets, professional and business services, and warehousing. In reaction, the US dollar rose to its strongest level in more than 11 years.  The employment report supports the view that the Fed will begin to raise interest rates in June.

The latest leg up for the dollar helped drive the price of gold down to its lowest in three months and $45 lower on the week at $1,167 a troy ounce.

Technically the S&P is holding just under a new record high, as is the Dow Jones Industrial Average. However, neither the Transports nor the Utilities indices are anywhere close to record highs. As per Dow Theory, the averages ought to confirm each other’s trend. This would indicate that caution is required.

UK house prices fell by 0.3% in February according to the latest figures from the Halifax. This was the first fall since October last year and takes the average house price to £192,372. Nevertheless, prices in the three months to February were 8.3% higher than a year ago. The figures came alongside news that the Bank of England has decided to maintain the base rate of interest at 0.5%. Rates have now been at their record low for six years.

Elsewhere, the Chinese government has set its GDP growth target at 7% for 2015, down from last year’s narrowly missed target of 7.5%. While the figure may seem high by developed economy standards, 7% would represent the lowest rate of Chinese growth in over two decades, down from 7.4% last year. Premier Li Keqiang also said that the government is targetting inflation of 3%, down from 3.5% last year but well ahead of the 0.8% price rises recorded by the country in January.