US stock indices decline after disappointing employment data


Major US stock indices fell at the open yesterday after disappointing data on private sector employment in February, which gained confidence in a rapid economic recovery fueled by the distribution of Covid-19 vaccines.
According to “Reuters”, the Dow Jones Industrial Average fell 38.6 points, equivalent to 0.12 percent to 31,352.96 points, and the Standard & Poor’s 500 Index fell by 6.3 points, or 0.16 percent, to 3,863.99 points, while the Nasdaq Composite Index lost 22.5 points, or 0.17 percent, to score. 13,336.25 points.
On the other hand, hopes for a recovery in the global economy raised European stocks for the third consecutive session yesterday, while it appears that Germany will ease restrictions on fighting the Corona virus, while investors are awaiting details of the measures that Britain will take in its new budget to support the economy.
The European Stoxx 600 index rose 0.7 per cent, while the German DAX index advanced 0.9 per cent, the French CAC 40 index rose 0.8 per cent, and the British FTSE 100 index rose 1 per cent.
And weak US bond yields supported global stocks, while German Chancellor Angela Merkel is expected to agree with regional leaders to gradually ease anti-virus restrictions, according to draft plans reviewed by “Reuters”.
Automobile manufacturers were the most profitable, with shares of “Steelantes”, “Renault” and “Volkswagen” advancing between 2.5 per cent and 3.6 per cent.
The share of “Hiscox” British Insurance Limited fell 8.8 percent to the bottom of the Stoxx 600 index after the company shifted towards heavy losses for the year 2020 and continues to refrain from providing dividends.
In Asia, Japanese shares closed slightly higher yesterday, as investors snapped up stocks linked to the economic cycle thanks to hopes for a faster economic recovery from the recession caused by the pandemic.
But the gains were capped by concerns about the volatility of the bond market and speculation of a massive sell-off to rebalance this month.
The Nikkei index rose 0.51 percent to close at 29,559.10 points, while the broader Topix index gained 0.51 percent to 1,904.54 points.
“With vaccines distributed globally, expectations of economic conditions returning to normal are growing. This stimulates investors to buy stocks that are highly vulnerable to the economy,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
The iron and steel sector rose to the highest level among 33 sectoral sub-indices on the Tokyo Stock Exchange. Cup Steel rose 9.09 percent, topping the Nikkei list of winners. Nippon Steel jumped 6.76 percent, while JFE Holdings gained 8.36 percent.
The share of “NIDIC” for the manufacture of electric motors fell 3.03 per cent, while the share of “M. Three”, which operates a medical services platform, fell 1.72 per cent. Tokyo Electron, a machinery maker, fell 1.22 percent.


Please enter your comment!
Please enter your name here