European and Japanese Stocks Rise Despite Weak Employment Data

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European and Japanese Stocks Rise Despite Weak Employment Data
European and Japanese Stocks Rise Despite Weak Employment Data

European and Japanese Stocks Rise Despite Weak Employment Data

The employment data from the U.S. does not seem to have an impact on the European and Asian stocks as of now, as most European and Asian stocks rose. Even the benchmark index traded near its highest close since May 2008 as the Nikkei led the pack. Another major development was that whereas the dollar weakened, US equity-index futures declined.

On the other hand, the Standard & Poor’s 500 rose 0.2 percent. However, Europe does not seem to have been impacted as the FTSE 100 index of leading British shares ended the week up 0.7 percent, similarly, Germany’s DAX rose 0.6 per cent and the CAC-40 in France was 0.6 percent higher.

In today’s trading, Asian stocks markets rose to some extent as investors shrugged off weak U.S. employment figures. It looks like investors are looking forward with optimism to U.S. earnings season as its national GDP increased earlier and fared better than expected. Earlier, the Stoxx Europe 600 Index gained 0.1 percent at 8:17 a.m. in London.

In Asian trading today, the Jakarta Composite Index surged 3.1 percent as Indonesia imposed a diluted ore-export ban. However, there was a slight decline in the Standard & Poor’s 500 Index futures that slid 0.2 percent.

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The Fed May Rethink Stimulus Tapering

Expectations are ripe that the U.S. Federal Reserve may come up with its plan not to taper stimulus as weak job numbers is a major concern now. The U.S. employment data does not seem to have an impact on China’s benchmark Shanghai Composite Index which has been on a loss for a long time today rose 0.3 per cent to 2,019.21.

A similar pattern was seen in Hong Kong’s Hang Seng which added 0.4 percent to 22,929.1. The positive trading continued in other Asian stocks. Whereas the Philippines Stock Exchange Index advanced 1.7 percent, a similar pattern was seen in India’s S&P BSE Sensex which gained 1.4 percent.

According to the sources the Fed expected to trim asset purchases in $10 billion increments over the next six meetings. There was not much respite in the U.S. stock market as on Wall Street, the Dow Jones Industrial average fell less than 0.1 percent as the country came up with the latest employment data.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com