DAWN.COM

Today's Paper | November 23, 2024

Published 11 Jan, 2020 07:36am

Global markets steady

LONDON: Global stock markets consolidated recent gains on Friday, comforted by an easing of geopolitical tensions and a looming US-China trade deal which allowed investors to shrug off mild disappointment sparked by a weaker-than-expected American jobs report.

The US economy generated 145,000 new jobs in December, around 20,000 short of consensus forecasts, a relatively minor miss.

“Stocks were unperturbed as the slightly softer than expected jobs data and weaker wage data confirmed the Fed’s stance that the economy is still ‘in a good place’ and that we will likely continue to see a low interest rate environment in 2020,” said Edward Moya at Oanda.

On Wall Street, where stocks had jumped to new records Thursday, the DJIA index was a touch lower in the late morning after opening unchanged.

“The continued fading of recently ramped-up geopolitical concerns and expectations of a signed US-China ‘phase one’ trade deal next week are appearing to help counter a softer-than-expected December non-farm payroll report,” said analysts at Charles Schwab.

Earlier, most Asian stock markets closed higher but investors struggled to maintain a rally triggered by easing US-Iran tensions the previous day.

The toning down of rhetoric from US President Donald Trump and Tehran following an Iranian missile attack on US assets in Iraq soothed concerns about a possible conflict in the Middle East and lit a fire under global equities on Thursday.

That allowed dealers to resume a buying spree that had characterised business for the past few weeks, cheered by China and the United States reaching a trade deal, central banks easing monetary policy and data pointing to an improved global outlook.

Published in Dawn, January 11th, 2020

Read Comments

At least 38 dead in gun attack on passenger vans in KP's Kurram District: police Next Story