Alexa
  • Directory of Taiwan

Markets turn nervous after downbeat US jobs news

Markets turn nervous after downbeat US jobs news

A smaller than anticipated increase in the number of private payrolls in the U.S. weighed on markets Wednesday, a day after the Dow Jones industrial average closed at its highest level in nearly five years.
Stocks in continental Europe had been edging higher as traders returned to their desk following the May Day public holiday but a disappointing survey from ADP turned sentiment around.
ADP reported that only 119,000 private jobs were added in the U.S. in April, well short of consensus forecasts of a 170,000 gain. Though the ADP survey has not always successfully predicted trends in official government data, analysts said the figures were a concern.
"While ADP has an inconsistent record ... it can provide a useful rough guideline to the official report," said Joshua Shapiro, chief U.S. economist at MFR Inc.
In Europe, the FTSE 100 index of leading British shares was down 0.9 percent at 5,762 while Germany's DAX fell 0.7 percent to 6,714. The CAC-40 in France remained modestly higher, trading 0.3 percent up at 3,223.
Wall Street opened lower following the ADP news _ the Dow Jones industrial average was down 0.4 percent at 13,225 while the broader Standard & Poor's 500 index fell 0.6 percent to 1,397.
The U.S. economy will likely remain at the forefront of investors' attention through the week. The run of data concludes with Friday's nonfarm payrolls data, which often sets the market tone for a week or two after their release.
At the moment, the consensus in the markets is that the U.S. economy generated a total of 160,000 jobs, up from March's 120,000 but below the gain recorded in the previous month. Many analysts think that's a sign the U.S. economy is slowing, despite Tuesday's upbeat news from the Institute for Supply Management that U.S. manufacturing expanded last month at its strongest pace since June, with orders, hiring and production all up. That helped markets rise, particularly in the U.S., on Tuesday.
In the currency markets, the euro was giving up some recent gains and trading 0.8 percent lower at $1.3132 as new figures highlighted the parlous state of the eurozone economy.
Eurostat, the EU's statistics office, reported that unemployment across the 17-country eurozone rose to 10.9 percent in March, its highest level since the euro was launched in 1999. A manufacturing survey from financial information company Markit also suggested that the sectoral downturn was deepening, particularly in Germany.
Earlier in Asia, Japan's Nikkei 225 rose 0.7 percent to close at 9,380.25 after a sharp tumble the day before. Hong Kong's Hang Seng gained 1 percent to 21,309.08.
Mainland Chinese shares advanced after authorities said that China's two stock exchanges would cut fees charged for trading yuan-denominated shares by 25 percent from June 1. The benchmark Shanghai Composite Index rose 1.8 percent to 2,438.44 and the Shenzhen Composite Index gained 1.7 percent.
Benchmark oil for June delivery was down 42 cents to $105.74 per barrel in electronic trading on the New York Mercantile Exchange.
____
Pamela Sampson in Bangkok contributed to this report.


Updated : 2021-06-18 08:35 GMT+08:00