Market update: Weak Chinese data weighs on markets – 10.06.2013

June 10, 2013
|In Global Round Ups
|By Jesmond Mizzi Financial Advisors

Source: Henderson Global Investors

Last Friday, US stocks advanced (S&P 500 and Nasdaq +1.3%, Dow Jones +1.4%). The May non-farm payrolls report showed that 175,000 jobs were created, in line with consensus estimates, while the unemployment rate came in at 7.6%. A stronger jobs report would have increased the likelihood of a slowing in the Federal Reserve’s bond-buying programme.

In Japan, the Nikkei closed Monday much firmer (+4.9%). Investors were cheered by an upward revision of Q1 GDP growth, which was raised from an annualised rate of 3.5% to a much stronger 4.1%, owing to higher household spending and private residential investment. Additionally, the current account surplus for April was better-than-expected. In comparison the mood is less upbeat in Europe (FTSE Eurofirst 300 +0.1%; FTSE 100 flat) as poorer Chinese economic data weighs on investor sentiment. Chinese exports slumped to a 10-month low in May, imports unexpectedly fell and industrial production growth was weaker than forecast.