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EUROPE-MARKETS
US jobs report, oil keep markets moving higher
LONDON, Feb 2, 2019 (BSS/AFP) – Stocks pushed higher on Friday, buoyed by
jobs data providing some reassurance that the government shutdown did little
damage to the wider economy and by solid earnings by oil companies.
The US economy added 304,000 net new positions last month — the highest
in nearly a year and almost double what economists had predicted, according
to data released Friday.
James Knightley, chief international economist at Dutch bank ING, said the
report “suggests that the US economy hasn’t been adversely impacted by the
government shutdown in any meaningful way.”
Friday’s non-farm payrolls figures were being watched for signals about
the state of the world’s number-one economy, with the Fed having already
warned of a global slowdown.
The nonfarm payrolls reports was not all positive though, as the
unemployment rate ticked higher to 4.0 percent, partly due the five-week
federal government shutdown.
Moreover, wage growth nearly flatlined on a monthly basis and December’s
job creation figure was revised down considerably.
Spreadex analyst Connor Campbell said “the jobs report worked in the Dow’s
favour by failing to give the Fed any reason to change its dovish outlook
from Wednesday.”
Earlier this week the Federal Reserve fuelled a rally on Wall Street by
signalling a slowdown in its pace of American interest rate hikes this year.
After a tepid start, US markets all pushed into the green in late morning
trading.
Both Chevron and Exxon beat earnings expectations, helping the Dow push
higher.
In Europe, both London and Paris ended the day with solid gains, while
Frankfurt finished essentially flat, penalised by shares in fintech Wirecard
plunging by a quarter.
China-US trade talks this week ended with no deal but with both sides
sounding notes of optimism and setting up more high-level meetings later this
month, temporarily soothing concerns of an all-out trade war.
Separately, official data showed Friday that eurozone inflation is moving
further away from the European Central Bank’s target of 2.0 percent —
indicating that the ECB would be less likely to raise interest rates this
year.
In foreign exchange activity, the European single currency rose against
the dollar.
The Shanghai stock market jumped Friday to close up 1.3 percent, as
traders welcomed news that authorities had relaxed certain rules to make
investing easier.
BSS/AFP/HR/0938