Sun, Jun 05, 2016 - Page 15 News List

European stocks reverse gains after US jobs data

Reuters, NEW YORK

European markets dived on Friday after data showed the slowest pace of US job growth in more than five years, dashing expectations that the US Federal Reserve could raise interest rates this month.

US nonfarm payrolls rose by just 38,000 last month, the smallest gain since September 2010 and far below an expected 164,000.

All 105 economists polled by Reuters had expected a higher number.

Wall Street’s top banks unanimously expect the Fed to leave rates unchanged when its policymakers meet this month in the wake of the US jobs report, results of a Reuters poll showed on Friday.

“This monthly report and the revisions to the past few months show that the labor market is not nearly as strong as many believed, so I think it takes June off the table,” said Chris Gaffney, president of EverBank World Markets in St Louis.

US shares pared losses, but still ended lower, while European stocks reversed gains.

Europe’s auto sector index ended 2.3 percent lower as the euro rallied against the US dollar.

MSCI’s all-country world equity index was last up 1.38 points, or 0.34 percent, at 403.87.

Europe’s broad FTSEurofirst 300 index closed 0.85 percent lower at 1,339.47 after gaining about 0.7 percent before the US data.

“The Fed rhetoric, which pushed hard to convince the market that they will move in the coming few meetings, just hit a wall,” said Marvin Loh, global markets strategist at BNY Mellon in Boston.

This story has been viewed 1634 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top