Index ending a five-day losing streak, European stocks rose to some extent and the Stoxx Europe 600 Index capped an upward movement today. This all happened as estimates tell that the U.S. jobs report may give clues on the timing of Federal Reserve stimulus cuts which is likely to be positive.
Whereas there was a positive trend in the Stoxx 600 that added 0.3 percent to 315.32 at 8:10 a.m. in London, Standard & Poor’s 500 Index futures increased 0.3 percent. A similar trend was seen in the MSCI Asia Pacific Index which obtained a growth of 0.1 percent, though insignificant, it was better comparing earlier trades in the week.
Major gainer in the day’s trade was Berkeley Group Holdings Plc (BKG). It gained 7.2 percent after reporting that first-half revenue jumped to a great extent. Similarly, Total SA rose 0.7 percent; this happened after Europe’s third-biggest oil company agreed to buy a stake in InterOil Corp.’s assets in Papua New Guinea which motivated investors.
However, Givaudan SA could not maintain the momentum as it plunged 5.3 percent after Nestle SA said it will sell shares worth $1.27 billion of the world’s largest flavorings maker. According to market observers, investors are seeking to gauge when the Fed will reduce stimulus amid signs of an improving U.S. economy.
Asian Stocks Trading Lower
As investors in Asia are waiting for any impact of the employment data to be released soon on the stimulus by the Fed, Asian shares spent much of today’s trade in a state of suspended animation. The eagerly awaited employment data will determine the fate of stimulus whether to continue and if yes, to what limit.
Despite slower stock market today, Japan’s Nikkei managed to steady after steep falls in the previous two days. However, MSCI’s broadest index of Asia-Pacific shares outside Japan was dead flat. A similar trend was in seen in the South Korean stock market which was also followed by Shanghai stocks which slipped 0.6%. A major reason behind Chinese stocks falling apart is that its currency the Yuan gained.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org