Positive US Jobs Data Sends Fear Gauge to 7-Year Low, German Factory Orders Fall
July 4, 2014 6:39 am
European stock markets slowed slightly on Friday morning following three-days of straight gains, with investors on Thursday cheering the stellar jobs data out of the US. The Stoxx Europe 600 fell 0.1% while London’s FTSE 100 was down 0.2% and the Dax in Frankfurt was off 0.1%.
The S&P 500 and Dow Jones Industrial Average closed at record levels on Thursday in a holiday-shortened week after non-farm payrolls rose by 288,000 in June, smashing forecasts for a gain of 215,000 and up from 224,000 in May. The unemployment rate was also down, to 6.1% in June from 6.3% in May. As a reflection of the improved sentiment, the fear gauge known as the CBOE Vix volatility index fell 4.6% to a seven-year low of 10.32. The US jobs report was released a day earlier than usual because of the July 4 Independence Day holiday – there is no US session later on Friday so markets will lack direction without a firm lead.
In Asian markets overnight stocks extended this week’s gains after the US jobs data fuelled confidence in the world’s largest economy. The Nikkei 225 in Tokyo is up 0.5% while the S&P/ASX 200 in Sydney is 0.6% and the Kospi in Seoul traded flat. The Hang Seng Index in Hong Kong is up 0.3% but the Shanghai Composite is down 0.1%.
In other asset classes, the US dollar strengthened while the euro was little changed at $1.3601.The Japanese yen weakened to Y102.26 against the dollar, its lowest point against the currency since June 10, before heading to Y102.11. Elsewhere, gold was steady at $1,319 per ounce after falling 0.5% as investors dumped the haven for riskier assets such as equities. Economic data in Europe is thin on the ground Friday, while there are no reports out of the US due the public holiday there.
Data of Germany this morning showed factory orders fell 1.7% in May, following a revised 3.4 percent increase the previous month. That’s more than the 1.1% figure expected by as geopolitical risks hit confidence in the country.
In the Euro zone, traders this morning are reviewing the European Central Bank’s policy meeting in the previous session which saw the bank stick with the policies it introduced a month ago, which so far haven’t helped to tackle the low-inflation in the region.
European stock markets slowed slightly on Friday morning following three-days of straight gains, with investors on Thursday cheering the stellar jobs data out of the US. The Stoxx Europe 600 fell 0.1% while London’s FTSE 100 was down 0.2% and the Dax in Frankfurt was off 0.1%.
The S&P 500 and Dow Jones Industrial Average closed at record levels on Thursday in a holiday-shortened week after non-farm payrolls rose by 288,000 in June, smashing forecasts for a gain of 215,000 and up from 224,000 in May. The unemployment rate was also down, to 6.1% in June from 6.3% in May. As a reflection of the improved sentiment, the fear gauge known as the CBOE Vix volatility index fell 4.6% to a seven-year low of 10.32. The US jobs report was released a day earlier than usual because of the July 4 Independence Day holiday – there is no US session later on Friday so markets will lack direction without a firm lead.
In Asian markets overnight stocks extended this week’s gains after the US jobs data fuelled confidence in the world’s largest economy. The Nikkei 225 in Tokyo is up 0.5% while the S&P/ASX 200 in Sydney is 0.6% and the Kospi in Seoul traded flat. The Hang Seng Index in Hong Kong is up 0.3% but the Shanghai Composite is down 0.1%.
In other asset classes, the US dollar strengthened while the euro was little changed at $1.3601.The Japanese yen weakened to Y102.26 against the dollar, its lowest point against the currency since June 10, before heading to Y102.11. Elsewhere, gold was steady at $1,319 per ounce after falling 0.5% as investors dumped the haven for riskier assets such as equities. Economic data in Europe is thin on the ground Friday, while there are no reports out of the US due the public holiday there.
Data of Germany this morning showed factory orders fell 1.7% in May, following a revised 3.4 percent increase the previous month. That’s more than the 1.1% figure expected by as geopolitical risks hit confidence in the country.
In the Euro zone, traders this morning are reviewing the European Central Bank’s policy meeting in the previous session which saw the bank stick with the policies it introduced a month ago, which so far haven’t helped to tackle the low-inflation in the region.
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