Stocks set to test record highs this week

US stocks look set to test record highs this week after rebounding from the first major slump of the Donald Trump presidency. The caveat is whether March jobs data lives up to expectations.

It was a week of moderation: UK Prime Minister Theresa May moderated her rhetoric as Britain began the formal process of leaving the European Union. The Republican party tried to give the impression that divisions were healing after the surprise schism between Trump supporters and hardcore fiscal conservatives that derailed healthcare reform. Paul Ryan, the Speaker of the House of Representatives, rode out rumours of an ouster and even floated the idea that the healthcare bill could be revived. Mr Trump departed from the comity script somewhat late in the week, when he threatened to fight against the fiscal conservatives' re-election unless they got on board with his economic programme.

While data is inconsistent, there are signs pointing to an economic boom, particularly from the consumer sphere. The Conference Board's reading of consumer confidence hit its highest levels since the year 2000. That's usually a leading indicator, meaning that Americans are about to go on another shopping binge. If Barack Obama set the tone for a more prudent America and saw savings rates rise during his tenure as US president, Mr Trump may be ushering in a return to the conspicuous consumption that has always been his "brand".