London (AFP) – US stock markets rose but European shares mostly fell on Friday as investors digested a jobs report and President Donald Trump’s unpredictable trade policies. The Dow, the tech-heavy Nasdaq, and the broad-based S&P 500 moved into positive territory after opening in the red.
Trump caused more disarray on trading floors after he announced on Thursday that he would delay tariffs on Canadian and Mexican goods covered under a North American trade agreement until April 2, days after they had taken effect following a previous delay. The decision followed a similar one-month reprieve for automakers after talks with Ford, General Motors, and Jeep owner Stellantis. However, Trump has stated he will not modify broad tariffs for steel and aluminum imports due to take effect next week, while China was hit with 20-percent tariffs earlier this week.
“Even though Donald Trump has made more goods exempt from tariffs on Canada and Mexico, it’s the constant tinkering that’s upset investors,” noted AJ Bell investment director Russ Mould. “The fact Trump keeps changing his mind confuses matters as companies have no idea what’s going on from one day to the next,” he added.
Investors were also reacting to official data showing the United States added 151,000 jobs last month, up from January’s revised 125,000 figure but fewer than expected by analysts. The unemployment rate ticked up to 4.1 percent from 4.0 percent. The report paints a picture of the employment market in the first full month since Trump returned to the White House in January, amid growing blowback over unprecedented cuts to the US government spearheaded by his billionaire adviser Elon Musk.
“Given the headlines around federal employment and worries about the economy, today’s jobs report was a huge focus for investors,” said Bret Kenwell, US investment analyst at eToro trading platform. “Until there’s more clarity around the current trade war and reassurance around the economy, a ‘risk-off’ mood can linger on Wall Street,” he said.
Eurozone stock markets were down in afternoon deals, but London was flat. The euro continued to win strong support as a planned spike in Germany’s defense and infrastructure spending fuels inflation concerns and puts pressure on the European Central Bank to pause cuts to interest rates. The ECB on Thursday reduced borrowing costs for the sixth time since June amid a struggling eurozone economy.
There was brighter news Friday, however, as official data showed the eurozone economy grew by 0.9 percent last year, higher than thought. German stocks receded Friday after data showed that Germany’s industrial orders in January posted their biggest monthly fall in a year. Japan’s Nikkei shares index led losses in Asia, closing down more than two percent. Chinese markets, which had been riding a wave of stimulus-induced optimism, ended the week modestly lower.
Chinese stocks had jumped earlier in the week after Beijing announced a growth target of around five percent at its annual meeting of the National People’s Congress. China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds and an escalating trade war with the United States.
Elsewhere, bitcoin plunged as much as 5.7 percent after Trump signed an executive order to establish a “Strategic Bitcoin Reserve” without planning any public purchases of the cryptocurrency. The unit recovered somewhat to trade down around one percent lower at about $89,000.
– Key figures around 1455 GMT –
New York – Dow: UP 0.3 percent at 42,716.39 points
New York – S&P 500: UP 0.6 percent at 5,770.37
New York – Nasdaq: UP 0.9 percent at 18,227.24
London – FTSE 100: FLAT at 8,685.64
Paris – CAC 40: DOWN 1.1 percent at 8,109.96
Frankfurt – DAX: DOWN 1.5 percent at 23,062.77
Tokyo – Nikkei 225: DOWN 2.2 percent at 36,887.17 (close)
Hong Kong – Hang Seng Index: DOWN 0.6 percent at 24,238 (close)
Shanghai – Composite: DOWN 0.3 percent at 3,372.55 (close)
Euro/dollar: UP at 1.0856 from 1.0787 on Thursday
Pound/dollar: UP at 1.2917 from 1.2882
Dollar/yen: DOWN at 147.48 from 147.97
Euro/pound: UP at 84.02 pence from 83.72 pence
Brent North Sea Crude: UP 2.2 percent at 70.96 per barrel
West Texas Intermediate: UP 2.2 percent at $67.80 per barrel
© 2024 AFP
