Dollar weakens despite stronger than expected jobs report
US stock market rebounded solidly on Friday boosted by stronger than expected April jobs report. The S&P 500rose 1% to 2945.64, ending 0.2% higher for the week. Dow Jones industrial advanced 0.8% to 26504.95. TheNasdaq rallied 1.6% to fresh record high 8164. The dollar turned sharply lower despite a report the unemployment rate fell to 49-year low of 3.6% while the Institute for Supply Management services index for April came in weaker than expected. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% to 97.46 but is higher currently. Futures on US stock indexes point to lower openings today.
DAX 30 outperforms European indexes
European stocks recovered on Friday supported by strong earnings and US labor market report. Both the EUR/USDand GBP/USD turned higher but are lower currently. The Stoxx Europe 600 Index added 0.4% led by bank shares. The DAX 30 advanced 0.5% to 12412.75. France’s CAC 40 edged up 0.2% and UK’s FTSE 100 gained 0.4% to 7380.64. Markets in Britain are closed for a bank holiday today.
Shanghai Composite leads Asian indexes plunge
Asian stock indices are sharply lower today after President Donald Trump tweeted Sunday he would raise tariffs on $200 billion of Chinese goods from 10% to 25% by Friday expressing his displeasure at China’s “attempt to renegotiate” the trade deal. Nikkei was closed for a holiday while yen’s climb against the dollar continued. China’s markets plunged despite Caixin report China service sector grew faster in April and China’s central bank decision to cut reserve requirement ratio to release about 280 billion yuan ($41 billion): the Shanghai Composite Index is down 6% while Hong Kong’s Hang Seng Index is 3% lower. Australia’s All Ordinaries Index is 0.8% lower despite the Australian dollar continuing slide against the greenback.
Brent tumbles
Brent futures prices are sharply lower today. Prices ended marginally higher on Friday despite Baker Hughes report the number of active US rigs drilling for oil rose by 2 to 807. Brent for July settlement added 0.1% to close at $70.85 a barrel Friday, losing 1.1% for the week.
