European and US stocks pushed further into record territory yesterday despite US job creation data missing expectations.
London’s FTSE 100 hit yet another record high at 7,598.99 points in morning deals, before trimming gains ahead of next week’s British election.
It closed 0.05% higher at 7,547.63 points.
Frankfurt’s DAX 30, meanwhile, jumped 1.3% to a record close at 12,822.94 points.
It rose as high as 12,878.59.
Paris’ CAC 40 closed 0.5% up at 5,343.41 points, while the EURO STOXX 50 ended 0.6% higher at 3,587.71 points.
The Dow Jones Industrial Index rose 0.2% from its record close on Thursday, shrugging off disappointing employment news from the Labour Department.
The US economy added just 138,000 net new jobs for May, well below analyst expectations, though the jobless rate decreased by a tenth of a point to 4.3%, a 16-year low.
“US stocks are modestly higher following yesterday’s data-fuelled advance, which appears to be lifting European equities and helped Asian markets gain ground,” said analysts at Charles Schwab brokerage.
“The advance comes even as the May US non-farm payroll report showed job gains noticeably missed estimates and included downward revisions to prior months...” the statement added.
Data released on Thursday by the US payrolls firm ADP showed private US companies hired at a blistering pace in May, helping push Wall Street’s three major stock indices to record closes.
That provided a positive lead to Asian and European stocks.
While there are concerns about the future of US President Donald Trump’s economic agenda, overall strong data have taken the front seat in driving global equity gains in recent weeks, pushing them to multi-year highs.
A healthy reading in the non-farm payrolls report would have given the Federal Reserve backing to hike interest rates again later this month.
But the mixed picture presented by Friday’s figures muddies the waters.
While equities remained in positive territory, the dollar fell.
Meanwhile oil prices tumbled on concerns of a ramp-up in fossil-fuel production following Trump’s controversial decision to withdraw the United States from the Paris climate agreement.
Trump’s climate agreement withdrawal drew criticism from US behemoths Amazon, Apple, Google and Facebook, but aside from oil prices, there appeared to be little in the way of major market impact.
“As global leaders decried Donald Trump’s decision to withdraw the US from the Paris climate accord, investors were quietly pumping funds into the stock market,” said CMC Markets analyst Jasper Lawler.
“Dumping the climate deal has not really hurt of hindered investor appetite for risk.
“If anything, The Donald taking a difficult decision to fulfil a campaign pledge is welcome if the same can be done with respect to tax policy.”
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