Upbeat US job data tempers rate cut bet, sinks global stocks

by   |  VIEW 174
Upbeat US job data tempers rate cut bet, sinks global stocks

On Friday, the 5th of July 2019, better-than-anticipated US employment figures had pounded down traders’ optimism of an aggressive interest rate cut policy of US Central bank as early as this month, while weak economic data in Germany, which followed China, South Korea and Japan, had added further strains over outlooks of global stocks.

Nonetheless, a basket of poor economic data alongside fading hopes of an interest rate cut as early as this month, had heaved a gauge of global stock markets lower on Friday (June 5th). Addressing to a robust US employment figures in June, an asset allocation manager at Fiera Capital, Candice Bangsund said, “Obviously, this was a key report for the Fed as well in determining their path in the near term, and with markets fully pricing in a July rate cut and several thereafter, the stronger-than-expected report is likely to throw cold water on those fairly dovish expectations”.

After reveal of US Labor Department’s report that United States added 2,24,000 new jobs in June, hitting a fresh five-month peak, investors’ optimism remained fairly downbeat, while MSCI’s gauge of global stock indices, which keeps track of stock exchanges of 49 countries, was plummeted by 0.42 percent.

Meanwhile, the regional Pan-European STOXX 600 shed 0.72 percent. At Wall Street, Dow shed 0.42 percent, Standard & Poor lost 0.18 percent, while Nasdaq fell by 0.1 percent on Friday’s (July 5th) market closure.

Aside from that, London’s FTSE 100 lost 0.66 percent, and Frankfurt’s trade sensitive DAX had winded down the day 0.49 percent lower, while Paris bourse was down by 0.48 percent. Concomitantly, beside the South Pacific, Nikkei had been among two major gainers on Friday’s (July 5th) market wrap up, as it closed the day 0.20 percent higher, while Mainland Shanghai had also rounded up the day 0.19 percent higher.

Hong Kong had ended the day almost flatlined, while Bombay stock exchange was down by 0.99 percent at Friday’s (July 5th) market wind down.