World stock markets reach near record high on Monday
World shares and stock markets closed near record highs on Monday as investors raised European trading activity and a welcome US jobs report against concerns about the highly permeable delta version of COVID-19. weighed.
The STOXX index of 600 major European companies was up 0.3%, reversing earlier losses after data showed euro area businesses expanded activity at the fastest rate in 15 years in June. In June, the activity of British services firms also grew at a slightly slower pace.
Britain’s FTSE was up 0.5% at 1600 GMT on Prime Minister Boris Johnson’s announcement on July 19 expected to confirm the end of COVID-19 restrictive measures in England.
French stocks also rebounded after Health Minister Olivier Veran warned that France could be headed for a fourth wave of the pandemic due to a delta variant.
The COVID-19 angst weighed on Japan’s stocks as well: The Nikkei fell 0.6% to a two-week low after a spike in infections in Tokyo, just weeks before the city hosted the Olympics.
Japan’s service sector activity declined for the 17th straight month in June, a survey showed.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.
China’s blue-chip stock index recovered 0.1% from earlier losses as a pledge by Beijing to continue policy support for its tech sector, crackdown on ride-hailing giant Didi Global and other platform companies in the country helped to counter concerns about the investigation.
The MSCI All Country World Index closed last week at a record 724.66, and was up 0.1% on Monday.
Trading was below normal with US markets closing for the extended weekend of July 4.
“Markets in general are still trying to find their feet,” said James Athe, investment director at Aberdeen Standard Investments.
S&P 500 futures signaled a flat open for Tuesday, after the index closed 0.8% higher on Friday. The Dow Jones Industrial Average rose 0.4% and the Nasdaq Composite rose 0.8%. Setting another record. [.N]
America’s non-farm payrolls grew by 850,000 jobs last month, higher than expected, data showed Friday. But the unemployment rate unexpectedly rose from 5.8% to 5.9%, while a closely watched average hourly earnings, a gauge of wage inflation, rose 0.3% last month, well above the consensus forecast for 0.4% growth. is less.
“Overall payroll levels are still 6.8 million below pre-pandemic February 2020 levels, and still below the level of substantial progress required by the Fed. As such, there is nothing in this report that should be encouraging to the Fed.”
Watching the minutes of the Federal Open Markets Committee meeting last month, policymakers stunned the markets by signaling two rate hikes by the end of 2023.
Commentary by Fed officials since then has been more balanced, particularly from Chair Jerome Powell, as investors parse Wednesday’s release for further clues on the timing of policy tightening.
With informations: Business Hala