On Friday, a basket of European bourses had wrapped up the day mostly lower as a steep downfall in US non-farm payrolls data for August had signalled a likely slowdown in global economic recovery, while retail and travel stocks exposed to American equity market had led the declines.
In factuality, in the day’s sharp downward spiral in a raft of European equity indices came forth as an immediate repercussion to US Labour Department’s closely monitored non-farm payrolls data for August, as US economy added only 235,000 jobs last month, falling far short of analysts’ forecasts and illustrating a lavishly languishing leisure and entertainment sector which seemingly had stalled last month amid a recent rise in delta cases in major G20 economies.
Amid such garrulous employment landscape in the world’s largest economy, the pan-European STOXX 600 faltered 0.6 per cent, marking up the worst decline in two weeks, while a gauge of global equity indices also had tumbled.
As beforementioned, retail stocks exposed to Wall Street had borne the heaviest brunt with a decline of 0.9 per cent in STOXX 600, while travel stocks were tanked by as much as 1 per cent.
European bourses plunge after softer US job growth in August
Citing statistics, in the day’s European market closure, London’s blue-chip FTSE 100 fell 0.36 per cent, Frankfurt’s DAX dwindled 0.37 per cent and French CAC 40 dived 1.08 per cent, while Italy’s FTSE MIB shrugged off 0.64 per cent and Madrid’s IBEX 35 had lost as much as 1.31 per cent.
On the week, London’s FTSE 100 shed 0.14 per cent, Frankfurt’s DAX lost 0.45 per cent and French CAC 40 added 0.12 per cent, while Italy’s FTSE MIB gained 0.22 per cent and Madrid’s IBEX 35 dropped 0.65 per cent.
Meanwhile, addressing to a seven-month low US non-farm payrolls data, Chief Executive of ZEGA Financial, Jay Pestrichelli said, “Friday’s weaker-than-expected jobs puts less pressure on the Fed to taper its stimulus, which is likely to provide a short-term boost for stocks.
The stock market loves stimulus and any indication that the Fed will remain fully accommodative is good news for investors. ”