On 2 April, 2015 – US shares rally on jobs data
US stocks advanced supported by decline in jobless claims, while European markets were mixed.
US
US stocks climbed on Thursday after two sessions of losses, as a fall in jobless claims raised optimism, while oil tumbled on fears of worsening oversupply if sanctions over Iran’s nuclear program are dropped. Data showing an unexpected fall in the number of Americans filing new claims for unemployment benefits boosted sentiment. The benchmark US S&P 500 index notched a modest weekly gain after declining 2.2 percent last week. The Dow Jones industrial average closed up 65.06 points, or 0.37 percent, at 17,763.24. The S&P 500 closed up 7.27 points, or 0.35 percent, at 2,066.96. The Nasdaq Composite closed up 6.71 points, or 0.14 percent, at 4,886.94.
Europe
European stock markets closed mostly lower on Thursday but managed to eke out modest gains in the Easter-shortened week. European markets are closed Friday and Monday for the Easter holidays. Thursday’s trading action was marked by the markets flitting between small gains and losses as investors appeared reluctant to take any sizable positions ahead of the holidays. The Stoxx Europe 600 index slipped 0.2% to 397.80, paring its weekly gain to roughly 0.6%. Germany’s DAX 30 index lost 0.3% to 11,967.39, but was on track for a weekly advance of 0.8%. France’s CAC 40 index stood out as one the few gainers in Thursday trading, tacking on about 0.2% to 5,074.14, and ending the week up about 0.8%. The FTSE also gained on the day.
Asia Pacific
Stocks across Asia rallied Thursday with Tokyo leading the gains, bringing to a halt two days of losses. Investors refocused on hopes Japan’s central bank and the country’s pension funds will keep increasing their allocation to equities to boost their returns. Japan’s Nikkei Stock Average ended up 1.5% at 19312.79 after a fall of nearly 2% in the previous two sessions. Share prices were higher from the start, and flew in the face of disappointing US private-employment and factory-activity data, which together provided fresh signs that economic growth had slowed in the first quarter.
Chinese stocks ended higher, thanks to late bargain hunting that salvaged an earlier falling market. The Shanghai Composite Index gained 0.4% to 3825.78 after dropping as low as 3775.89 shortly after the lunch break. The gains were concentrated in sectors perceived as still enjoying cheap valuations, including base metals and heavy machinery.
Australia’s S&P/ASX 200 finished up 0.6% at 5898.60, after trade figures came in line with expectations. Australia posted a seasonally-adjusted trade deficit of 1.3 billion Australian dollars in February, compared with a A$1.0 billion deficit in January, the statistics bureau said Thursday. It was the biggest shortfall since September 2014. In Hong Kong, the Hang Seng Index finished up 0.8% to 25275.64 ahead of a three-day Easter holiday.
Global Stock Market Recap
Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Anne D PickerChief EconomistEconoday