Dollar weakening accelerates on weak jobs report
US stock market ended solidly higher on Friday as weak May jobs report supported hopes of Fed interest rate cuts soon. The S&P 500 rose 1.1% to 2873.34, recovering 4.4% for the week. Dow Jones industrial advanced 1% to 25983.94. The Nasdaq rallied 1.7% to 7742.10. The dollar accelerated weakening as US economy added 75,000 new jobs in May, while 185,000 new jobs were expected, the Labor Department reported. 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 0.5% to 96.568 but is higher currently. Futures on US stock indices point to higher openings today.
CAC 40 outperforms European indexes
European stocks resumed advancing on Friday amid rising hopes the Federal reserve and European Central Bank may ease monetary policies soon after recent round of weak data. Both the GBP/USD and EUR/USD accelerated their climbs but are lower currently. The Stoxx Europe 600 Index gained 0.9% Friday. The DAX 30 rose 0.8% to 12045.38 despite a downward revision by the Bundesbank of its growth projections for Germany. France’s CAC 40rallied 1.6% and UK’s FTSE 100 advanced 1% to 7331.94.
Hang Seng the leader among Asian indexes
Asian stock indices are rising today after the decision by President Trump to suspend tariffs on Mexican imports bolstered investors’ sentiment. Nikkei extended gains 1.2% to 21134.42 with yen slide against the dollar resuming. China’s markets are gaining after better than expected trade data for May: the Shanghai Composite Index is up 0.9% and Hong Kong’s Hang Seng Index is 2.2% higher. Australia’s All Ordinaries Index was closed for a holiday with the Australian dollar turning lower against the greenback.
Brent futures prices are edging higher today. Prices ended sharply higher on Friday buoyed by Baker Hughes report the number of active US oil rigs fell 11 to 789 last week: Brent for August settlement jumped 2.6% to close at $63.29 a barrel Friday, rising 2.1% for the week.