The European index is at its lowest level in two weeks
Wall Street suffered losses in a volatile week that witnessed a bloody session on Thursday, after which stocks rebounded strongly on Friday, after strong job data strengthened the opinion of the strength of the economy, but also increased the chances of the Federal Reserve delaying the reduction of interest rates.
US Labor Department data showed the number of new jobs in March was higher than expected as wages rose steadily, indicating that the economy ended the first quarter on solid ground.
The world’s largest economy created 303,000 jobs in March, an increase of more than 50,000 jobs compared to 270,000 jobs created the previous month, according to what the Ministry of Labor announced.
The increase, which comes seven months before an election in which President Joe Biden and former Republican President Donald Trump will face off in November, is much higher than market expectations for an increase of 200,000 jobs.
At Friday’s close, the Standard & Poor’s index gained 1.12%, recording 5,204.30 points, and the Nasdaq Composite index increased 194.54 points, or 1.21%, to record 16,248.52 points. The Dow Jones Index rose 306.18 points, or 0.79%, to 38,903.16 points.
Tom Plumb, president and portfolio manager at Plumb Funds, said the data reinforced expectations that the Fed is likely to postpone interest rate cuts as recession fog lifts from the horizon.
Indices recorded declines during the week, after a weak services activity report, a strong manufacturing report, and surprising statements by Federal Reserve governors. Over the course of the week, the Dow Jones fell by 2.3%, and the Standard & Poor’s and Nasdaq fell by 1% and 0.8%, respectively.
Thursday was a bloody day for stocks, which fell sharply as Federal Reserve officials took a cautious approach in their comments on expectations of interest rate cuts, while investors awaited the important monthly jobs report in the United States.
Standard & Poor’s lost 1.23%, while Nasdaq fell 1.40% and Dow Jones fell 538.44 points, or 1.38%.
European stocks
In Europe, the benchmark stock index closed at its lowest level in more than two weeks, Friday, in the wake of statements from some US Federal Reserve officials about monetary tightening, escalating tensions in the Middle East, and a larger-than-expected increase in US jobs data.
The European Stoxx 600 index fell 0.9%, recording its worst daily performance since early February. The index recorded a weekly loss of 1.2%, the worst weekly decline since mid-January.
Standard indices in all major European economies fell on Friday, such as Germany, France, Italy and Spain, by more than 1% each. On a weekly basis, the German “DAX” fell by 1.6%, the French “CAC” by 1.7%, and the British “FTSE” by 0.28%. It was a short week for European stocks; Monday was a holiday on the occasion of the glorious Easter.
“The strength in US employment should not move the needle too much for the ECB,” said Steve Sosnick, chief strategist at Interactive Brokers.
He added: “In Europe, there are a few more additional pressures on many economies, so the situation there may be more ready for lower interest rates.”
Optimism about interest rate cuts by the European Central Bank and the Federal Reserve has been the main driver of gains in stock markets globally since late 2023.
Japanese stocks
In Tokyo, the Japanese Nikkei index fell about 2% to its lowest levels in three weeks, Friday, recording the worst weekly performance since December 2022, with technology stocks declining. The Nikkei index fell 781 points, on Friday, to 38,992.08 points, bringing its loss for this week to 3.41%.
This is the second consecutive weekly loss for the index. (Agencies)
Performance of the week
Nikkei -3.41%
Dow Jones -2.3%
Mr. -1.7%
DAX -1.6%
S&P -1%
Nasdaq -0.8%
FTSE -0.28%
2024-04-06 19:50:51
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