Stock Markets – Closing Note – 7 Sep
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Most European stock markets closed lower. Investor sentiment has remained conditioned by threats to trade relations between the US and its main partners (European Union, Canada and China). The banking sector remained under pressure. Deutsche Bank shares fell 1.48%, after news that the Chinese group HNA intends to sell its 7.60% stake. On the other hand, IAG's stocks have come down, in reaction to the British Airways statement that a computer-based attack, lasting several days, will have affected 380,000 cards. On the macroeconomic front, Eurostat reported today that the economies of the Eurozone and the European Union grew 2.10% in the second quarter, after 2.10% in the first three months of the year. Compared to the previous quarter, GDP in the Euro Zone and in the EU rose 0.40%.
Wall Street traded slightly without a definite trend, in a session marked by investor reaction to economic data at a time of uncertainty hanging over the US trade negotiations. In terms of economic indicators, the most awaited indicator of the day and week was the employment report, known today before the opening of the session. This publication has raised renewed fears about the conduct of monetary policy by the FED. During August, the US economy created 201,000 jobs, up from 190,000 expected and 157,000 in July, reflecting a growing economy that showed no signs of slowing down during the summer season. The annualized unemployment rate (currently at the lowest of the last 18 years) was 3.90%, down from 3.80% in July, but in line with expectations. But the biggest surprise came from wages, since it was observed in August a monthly increase of 0.40%, higher than the 0.20% forecast and the previous 0.30%. Year-on-year, the increase was 2.90% for the highest since June 2009.