Global Stocks Rise Ahead of U.S. Jobs Report
December 06 2019 - 5:29AM
Dow Jones News
By Avantika Chilkoti
Global stocks rose Friday ahead of the latest U.S. jobs report
as investors await cues on whether the world's largest economy has
enough momentum to weather a prolonged trade dispute with
China.
Futures tied to the Dow Jones Industrial Average rose 0.2%,
while the Stoxx Europe 600 index gained 0.4%. In Asia, the Shanghai
Composite Index closed up 0.4%, while the Hong Kong and South
Korean gauges rallied 1.1%.
Economists surveyed by The Wall Street Journal expect U.S.
employers added jobs at a solid pace during November, with nonfarm
payrolls increasing by 187,000 and the unemployment rate remaining
at a historically low 3.6%. Household spending has proved to be
crucial this year for U.S. economic growth, though the Federal
Reserve has also cut rates three times this year to help bolster
output amid rising fears of a global slowdown.
"All that's keeping it together from the U.S. perspective at the
moment is the consumer," said James Athey, investment analyst at
Aberdeen Asset Management. Weak employment figures would have
knock-on effects for confidence and spending, he said.
Markets are likely to have an asymmetrical reaction to the jobs
report, Mr. Athey said. Better-than-expected jobs figures would be
unlikely to alter expectations that the Fed will keep rates on hold
for the foreseeable future, but a negative surprise could turn
sentiment on the strength of the economy.
U.S.-China trade talks also remain in the spotlight for markets
ahead of the Dec. 15 deadline for new tariffs on consumer goods to
take effect. At the end a week that has seen markets react to
conflicting signals on the progress of negotiations, China's State
Council on Friday began the process of exempting some soybeans and
pork imported from the U.S. from punitive tariffs, the state-run
Xinhua News Agency said.
Over in Europe, shares in French pharmaceuticals maker Ipsen
dropped over 20% after the U.S. Food and Drug Administration put
studies for one of its drug candidates on partial clinical hold for
patients who are under the age of 14.
Meanwhile, U.K. markets remained volatile ahead of a general
election next week. The FTSE 250 index, which is dominated by
companies that have significant domestic operations, rallied 0.6%
on Friday as investors speculate that Prime Minister Boris
Johnson's Conservative Party will come out on top in the vote,
reducing the uncertainty around the U.K.'s withdrawal from the
European Union.
"The market overwhelmingly believe we will get a Tory majority
of sufficient size to take away any concern about their ability to
pass withdrawal legislation," Mr. Athey said.
The pound edged down marginally against both the dollar and the
euro.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
December 06, 2019 05:14 ET (10:14 GMT)
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