New York (AFP) – Stock markets advanced Wednesday despite data showing US private sector job growth slowing last month, reviving fears about the economy. Investors also shrugged off US President Donald Trump’s tough words on China and his doubling of tariffs on imports of steel and aluminum. Separate figures on Tuesday showed that US job openings unexpectedly rose in April, somewhat calming worries about the impact of Trump’s tariff blitz on the world’s number one economy.
But a Wednesday report by payroll firm ADP showed private sector employment rose by just 37,000 jobs last month, slowing from the 60,000 figure in April. The figure was also sharply below a Briefing.com consensus of 115,000. Wall Street’s major indexes closed mixed, as investors were careful not to overreact to the hiring numbers while awaiting government payroll figures due Friday. “The report…stirred some growth concerns that led to some knee-jerk selling interest in the equity futures market and some impulse buying in the Treasury market,” said Briefing.com analyst Patrick O’Hare.
Comments by Trump that US Federal Reserve Chair Jerome Powell has been “too late” to cut US interest rates also rattled sentiment, he added. But O’Hare said that concerns about slowing growth could raise expectations that the Fed will cut rates “and few things calm the market’s nerves more than the idea of rate cuts.” The jobs data came ahead of crucial non-farm payrolls figures Friday, which could have a bearing on the Fed’s upcoming monetary policy decision in light of weaker growth and fears of tariff-fueled inflation. They also came as the OECD cut its growth forecast for the United States and the rest of the world, pointing to fallout from tariffs.
– Talks advancing? – With Trump possibly speaking with Chinese President Xi Jinping this week, the US leader said on his Truth Social platform that it was “extremely hard to make a deal” with his counterpart. US-China tensions have ratcheted back up after Trump accused Beijing of violating an agreement that led to a dialing down of tit-for-tat tariffs between the world’s two biggest economies.
Also on Wednesday, Trump doubled US tariffs on steel and aluminum imports to 50 percent, ramping up his trade war with foes and allies alike. EU trade commissioner Maros Sefcovic and US Trade Representative Jamieson Greer held talks on the sidelines of an OECD ministerial meeting in Paris. Sefcovic said that the EU “strongly” regrets the tariff increase, adding that it “doesn’t help the ongoing negotiations, especially as we are making progress.” But Greer noted in a statement that negotiations were “advancing quickly.”
Elsewhere, Seoul’s stock market rallied more than two percent — pushing into a bull market after rising more than 20 percent from its recent low in April — as Lee Jae-myung won South Korea’s snap presidential election. The won gained against the dollar. Germany’s stock market added 0.8 percent after the government unveiled a sweeping package of corporate tax breaks aimed at boosting investment and pulling Europe’s largest economy out of the doldrums.
– Key figures at around 2025 GMT –
New York – Dow: DOWN 0.2 percent at 42,427.74 points (close)
New York – S&P 500: FLAT at 5,970.81 (close)
New York – Nasdaq Composite: UP 0.3 percent at 19,460.49 (close)
London – FTSE 100: UP 0.2 percent at 8,801.29 (close)
Paris – CAC 40: UP 0.5 percent at 7,804.67 (close)
Frankfurt – DAX: UP 0.8 percent at 24,276.48 (close)
Tokyo – Nikkei 225: UP 0.8 percent at 37,747.45 (close)
Hong Kong – Hang Seng Index: UP 0.6 percent at 23,654.03 (close)
Shanghai – Composite: UP 0.4 percent at 3,376.20 (close)
Euro/dollar: UP at $1.1417 from $1.1371 on Tuesday
Pound/dollar: UP at $1.3548 from $1.3518
Dollar/yen: DOWN at 142.86 yen from 144.03 yen
Euro/pound: UP at 84.26 pence from 84.11 pence
Brent North Sea Crude: DOWN 1.2 percent at $64.86 per barrel
West Texas Intermediate: DOWN 0.9 percent at $62.85 per barrel.
© 2024 AFP
