Rising Infections and Weak US Jobs Data Brake Markets

NYSE
  • European and US stock markets posted mixed results Wednesday as dealers tried to quantify the impact of a rise in coronavirus infections around the world.
  • London’s benchmark FTSE 100 index remained in the red to the end with a decline of 0.6 percent, and Frankfurt was essentially unchanged, but Paris closed with a slight gain following a mixed session in Asia.
  • In Asia, investors had rushed out of the blocks early on Wednesday following the blockbuster US performance a day before, as vaccine successes and easing political uncertainty boosted investor confidence in the economic recovery.
  • Visit The Financial Today’s homepage for more stories.

NEW YORK — European and US stock markets posted mixed results Wednesday as dealers tried to quantify the impact of a rise in coronavirus infections around the world.

Though the Nasdaq claimed a new record high, worse-than-expected US jobless claims data reinforced a generally downbeat mood on Wall Street, with the Dow losing steam and closing below 30,000 points one day after it finished above that level for the first time.

London’s benchmark FTSE 100 index remained in the red to the end with a decline of 0.6 percent, and Frankfurt was essentially unchanged, but Paris closed with a slight gain following a mixed session in Asia.

Oil prices continued their ascent towards $50 per-barrel on vaccine hopes, while the dollar slipped against the euro and yen.

“European markets are largely treading water… with recent vaccine-led gains starting to fade once again,” said analyst Joshua Mahony at trading firm IG.

Applications for jobless aid marked their second straight weekly increase with 778,000 new filings last week, fueling concerns that a renewed economic downturn is beginning.

“Many businesses have closed down for good, and many jobs will never return,” noted Fawad Razaqzada, an analyst at ThinkMarkets.

Other US data was mixed. New home sales remained strong, and durable goods orders increased more than expected in October, even as consumers saw their incomes fall last month.

US markets will be closed Thursday for the Thanksgiving holiday.

In Asia, investors had rushed out of the blocks early on Wednesday following the blockbuster US performance a day before, as vaccine successes and easing political uncertainty boosted investor confidence in the economic recovery.

Signs that infection rates in Europe are slowing enough to allow some countries to ease lockdown measures added to the sense of hope across trading floors.

Excitement was nonetheless tempered by a high number of new cases and deaths, as well as a pick-up of cases in other nations that are causing governments to reimpose containment measures.

Key Figures (2215 GMT)

New York – Dow: DOWN 0.6 percent at 29,872.47 (close)

New York – S&P 500: DOWN 0.2 percent at 3,629.65 (close)

New York – Nasdaq: UP 0.5 percent at 12,094.40 (close)

London – FTSE 100: DOWN 0.6 percent at 6,391.09 points (close)

Frankfurt – DAX 30: FLAT at 13,289.80 (close)

Paris – CAC 40: UP 0.2 percent at 5,571.29 (close)

EURO STOXX 50: UP 0.1 percent at 3,511.90 (close)

Tokyo – Nikkei 225: UP 0.5 percent at 26,296.86 (close)

Hong Kong – Hang Seng: UP 0.3 percent at 26,669.75 (close)

Shanghai – Composite: DOWN 1.2 percent at 3,362.33 (close)

Euro/dollar: UP at $1.1914 from $1.1892 at 2200 GMT

Pound/dollar: UP at $1.3378 from $1.3357

Dollar/yen: UP at 104.45 yen from 104.44 yen

Euro/pound: UP at 89.05 from 89.03 pence

West Texas Intermediate: UP 1.8 percent at $45.71 per barrel

Brent North Sea crude: UP 1.6 percent at $48.61 per barrel

Story by Roland Jackson; Image by vishpool

Total
0
Shares

Leave a Reply

Previous Post
Japan Stock Exchange

Markets Mixed As Early Rally Loses Momentum

Next Post
Joe Biden

US Sectors and Stocks Boom but Data Show Economic Headwinds Await Biden Premium

Related Posts