World stock markets rose yesterday as analysts said weaker-than-expected US jobs figures indicated a Federal Reserve interest rate hike is still on the cards but probably not this month.
Europe’s main markets soared and US shares were also up after the highly anticipated US jobs creation data revealed the labour market slowed in August.
Paris’ CAC jumped 2.3% at 4,542.17 points, followed by a 2.2% increase by London’s benchmark FTSE 100 index at 6,894.60 points, with the Dax in Frankfurt closing up 1.4% at 10,683.82 points. The Euro Stoxx 50 closed up 1.9% at 3,075.86 points.
But analysts said that although the employment data was likely not strong enough to spur an imminent rate rise, it revealed a steady overall jobs market in the world’s biggest economy.
Unicredit’s Harm Bandholz said he now expected the Fed to act in December.
A week ago US Federal Reserve chief Janet Yellen told global central bankers that the case for a rate increase had “strengthened” in recent months but gave no clear timeline.
The US jobs data comes on the heels of Thursday’s closely-watched ISM manufacturing gauge having hit an eight-month low.
The economy added 151,000 new positions in August, a sharp drop from July’s revised total of 275,000 new non-farm positions and also well below analyst expectations.
The unemployment rate remained steady at 4.9% for the third month in a row, with the number of long-term unemployed unchanged at 2mn people.
In corporate news, Samsung said it would suspend sales of its latest flagship smartphone Galaxy Note 7 as reports of exploding batteries threatened to damage the reputation of the South Korean electronics giant.
Samsung — the world’s top maker of smartphones and ordinary mobile phones — will also offer new devices for those who have already bought the large-screen smartphone, its mobile chief said.
Ireland’s government agreed Friday to recommend an appeal against the EU’s tax ruling on Apple but said it was recalling parliament early for a special session to debate the issue.
It follows a ruling earlier in the week by the EU which said Apple owes €13bn ($15bn), plus interest, in back taxes, putting Ireland at the centre of a row between Europe and the United States.
Oil prices rebounded as traders fished for bargain crude after the previous day’s heavy losses, and eyed an upcoming meeting to tackle a global supply glut.
Approaching 1600 GMT yesterday, WTI for October delivery rebounded by $1.33 to $44.49.
Brent for November added a hefty $1.40 to $46.85 compared with the close on Thursday.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Al Khaliji reports 5% increase in H1 net profit to QR335mn
Doha Bank reports H1 net profit of QR471mn
Opec+ pushes on with supply boost, yet split on quotas
Ex-Euribor traders get jail terms for rate-rigging plot
Japan exports to US fall; business mood sours
SoftBank’s Son says Japan is ‘stupid’ to disallow ride-sharing
India growth story intact; GDP to grow 7.5%: Ficci
China to use ‘counter-cyclical’ measures to curb FX volatility
Boeing wins air show overshadowed by incognito jet orders