Australian employment numbers were mixed last week. The economy created 28.4 thousand jobs in April, marking a 3-month high and crushing the estimate of 15.2 thousand. However, the unemployment rate climbed to 5.2%, higher than the estimate of 5.0%. This is the highest level since August. The Westpac Consumer Sentiment slowed to 0.6%, while the wage price index remained pegged at 0.5%.
Trade tensions between the U.S. and China rose sharply last week. The U.S. and China exchanged tariffs on each other products, dampening hopes for a trade deal and weighing on risk appetite. The U.S. raised tariffs on $200 billion in Chinese goods, from 10% to 25%. The Chinese response was vigorous, as China retaliated with tariffs on $60 billion of U.S products. Although the U.S.and China are scheduled to continue trade talks, investors are wary after the latest tariff battle.