Financial Markets 06/04 05:51
European markets opened on Thursday lower while Asian shares gained after
Wall Street rose on better U.S. jobs and manufacturing conditions than expected.
(AP) -- European markets opened on Thursday lower while Asian shares gained
after Wall Street rose on better U.S. jobs and manufacturing conditions than
London, Frankfurt and U.S. futures were lower. Tokyo, Hong Kong and Sydney
advanced while Shanghai declined.
Stock markets have risen on optimism about a possible global recovery from
the coronavirus pandemic as more economies reopen despite rising case numbers
in the United States, Brazil and other countries.
Wall Street turned in its fourth straight gain after surveys Wednesday
showed employers cut fewer jobs than forecast last month and a U.S.
manufacturing downturn eased slightly.
"The not too bad news keeps coming, enabling the hopes for economic rebound
alongside the reopening," said Jingyi Pan of IG in a report.
In early trading, the FTSE 100 in London was down 0.1% at 6,376.20 and
Frankfurt's DAX lost 0.5% to 12,424.94. The CAC 40 in France shed 0.4% to
On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones
Industrial Average were down 0.3%.
In Asia, Tokyo's Nikkei 225 rose 0.4% to 22,695.74 and Sydney's S&P-ASX 200
gained 0.8% to 5,991.80.
The Shanghai Composite Index shed 0.1% to 2,919.25. The Hang Seng in Hong
Kong rebounded from morning losses to close up 0.2% at 24,366.30.
The Kospi in Seoul rose 0.2% to 2,151.18 and India's Sensex dropped 0.6% to
33,900.82. New Zealand, Singapore and Bangkok advanced while Jakarta retreated.
On Wednesday, the S&P 500 rose 1.4%. The Dow added 2% and the Nasdaq
composite advanced 0.8%.
A survey from payroll processor ADP said private employers cut nearly 2.8
million jobs last month less than the 9.3 million that economists told
investors to expect. That raises optimism that Friday's more comprehensive jobs
report from the U.S. government may also not be as bad as feared. Economists
say it may show a loss of 8 million jobs, which would be a deceleration from
April's loss of 20.5 million.
Other reports showed the U.S. economy is in bad shape but not as dismal as
One report said services industries contracted by less than economists
expected, and at a more modest rate than in April. Another report said factory
orders dropped 13% in April, but not by as much as the 14.8% that economists
Companies that would most benefit from a growing economy led the market
Wednesday, continuing a recent trend as hopes rise that the economy and life in
general can become closer to normal as business-shutdown orders lift.
Stocks have been climbing since late March, at first on relief after the
Federal Reserve and Congress promised massive amounts of aid for the economy.
More recently, the driving force has been optimism that growth can resume as
states across the country and nations around the world lift restrictions on
businesses intended to slow the spread of the outbreak.
Widespread protests around the country following the killing of George Floyd
haven't dented the rally. One worry is that by bringing so many people
together, the protests could also lead to more coronavirus infections.
Many professional investors have been warning that the stock market's rally
may have been too much, too soon. The recovery for the economy is likely to be
much slower than the sharp rebound the stock market has just undertaken, which
could be setting investors up for disappointment.
In energy markets, benchmark U.S. crude lost 44 cents to $36.85 per barrel
in electronic trading on the New York Mercantile Exchange. Brent crude, the
benchmark for international oils, shed 22 cents to $39.57 per barrel in London.
The dollar gained to 109.06 yen from Wednesday's 108.90 yen. The euro
declined to $1.1207 from $1.1215.