The Japanese Nikkei declines and anticipates the repercussions of the Taiwan earthquake
The performance of US stocks was mixed on Wednesday, on the back of the release of jobs data in the US private sector.
The Standard & Poor’s 500 index fell 0.05%, the Nasdaq fell 0.13%, while the Dow Jones index rose 0.01%.
Private sector job growth expanded in March at the fastest pace since July 2023, indicating continued prosperity in the US labor market, payroll processing company ADP said Wednesday. Companies added 184,000 workers on a monthly basis, up from an upwardly revised February gain of 155,000 workers, which was also the Dow Jones estimate for March.
In addition to the strong rebound in employment, ADB reported that wages for workers who remained in their jobs increased 5.1% from a year ago, the same rate as February, after showing steady easing going back to 2023.
Wall Street is emerging from a losing session on key benchmarks after last week’s inflation data, in addition to some strong manufacturing numbers, as investors worried that the Federal Reserve would take longer to lower interest rates. Treasury yields rose, with the interest rate on 10-year bonds touching their highest levels since November. The record price was stable on Wednesday.
On Tuesday, the Dow Jones index fell 1%, the Standard & Poor’s 500 index lost 0.72%, while the Nasdaq index fell 0.95%.
- European stocks
The performance of European markets was mixed on Wednesday, as sentiment became cautious at the beginning of the new trading quarter.
The Stoxx 600 index rose 0.05%, with sectors and most stock exchanges trading in a mixed zone. Banking stocks rose by 0.9%, while mining stocks fell by 0.2%.
The British FTSE 100 index fell 0.32%, while the German DAX index rose 0.2%, and the French CAC 40 index rose 0.19%.
Wednesday was light on the corporate earnings front, as investors digested new inflation data from the euro zone. Prices in the 20-country euro zone fell by 2.4% in March, according to preliminary figures.
- Japanese stocks
The Japanese Nikkei index fell on Wednesday, affected by the decline in the shares of Fast Retailing, which owns the Uniqlo supermarket chain, in addition to the decline of Wall Street the previous night.
Shares of technology companies fell, tracking the impact of their counterparts in the United States.
The Nikkei index closed down 0.97% to 39,451.85 points after falling earlier in the session to its lowest level since March 18, at 39,217.04 points. The broader Topix index fell 0.29%. Fast Retailing, a heavyweight in the index, lost 3.34% compared to other influential stocks, becoming the largest contributor to the Nikkei’s decline.
Oil prices continued their gains on Wednesday, as a larger-than-expected decline in US crude inventories and escalating geopolitical tension raised investor concerns about tight supplies.
The Joint Ministerial Monitoring Committee of the OPEC+ alliance left the oil production policy unchanged.
Brent crude futures for June delivery rose 1.06%, to $89.85 per barrel, while US West Texas Intermediate crude futures for May delivery rose 1.07%, to $86.03 per barrel. (Agencies)
2024-04-03 19:20:37
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