Market update: Second-guessing the Fed move on tapering: crucial US jobs data eyed today – 06.12.2013

Source: Henderson Global Investors

Wall Street stocks ended lower on Thursday reacting to a stronger-than-expected revision to US Q3 gross domestic product (GDP) growth (3.6% versus initial reading of 2.8%) and a strong jobless claims report, as the number of claimants for unemployment benefit unexpectedly fell last week. The data reinforced the notion that the US Federal Reserve could begin tapering its asset purchases as early as December. Both the Dow Jones and the S&P 500 indices finished 0.4% down. Telecom and financials stocks led the declines while industrials were the only sector not to finish lower.

Tensions ahead of today’s release of the November US non-farm payroll number, which many assume could swing the decision on tapering, dominated Asian trading overnight. Most bourses ended on a cautious note. Japan’s Nikkei 225 managed to recoup some of the losses over the last two days, rising 0.8% as a result of a 0.3% fall in the yen against the US dollar. European markets are cautiously positive this morning. In London the FTSE 100 staged a moderate bounce back from an eight-week low, helped by bargain hunters ahead of the US payrolls number and gains in the housing and oil sector. At the time of writing, the index was up 0.3%. The FTSE Eurofirst 300 was up 0.4% at the same time.