Wall Street rebounds as European stocks slide
Sunday, 4 November 2007
NEW YORK, Nov 3 (AFP): Global markets were hit by jitters yesterday but Wall Street managed to end with modest gains after an unexpectedly sharp gain in US job creation eased some concerns about the world's biggest economy.
The Dow Jones Industrial Average closed up 0.20 per cent at 13,595.10 in volatile trade, coming back from intraday losses of more than 100 points.
The Nasdaq composite increased 0.56 per cent to finish at 2,810.38 and the Standard & Poor's 500 broad-market index added 0.08 per cent to 1,509.65.
The market action came a day after a punishing decline of more than two per cent for the main US indexes amid growing concerns about the impact of the US housing and credit crisis on the financial sector.
The US government said employers added 166,000 new jobs in October, defying forecasts of weak growth and suggesting the economy was holding up despite housing and credit market woes.
"The employment data is a stark reminder that the economy is a long way from recession," said Dick Green, analyst at Briefing.com.
"The market remains very volatile and will continue to be sensitive to bad news from the financial sector, but as long as the economy stays out of recession, stocks represent good value."
The news from Washington moved markets in London, Paris and Frankfurt off midday lows but not enough to secure a positive finish to the week.
The London FTSE 100 index shed 0.84 per cent to close at 6,530.60, while in Paris the CAC 40 fell 0.18 per cent to 5,720.42. The Frankfurt Dax lost 0.40 per cent to end the week at 7,849.49.
The Euro Stoxx 50 index of leading eurozone issues fell 0.15 per cent to 4,408.70.
On the currency market the dollar plunged to another record low against the euro, as the single European currency struck 1.4528 dollars for the first time.
The surging euro has dampened sentiment in the 13 nations that share the currency, with political and corporate leaders fearing it will reduce the competitiveness of eurozone exports and stifle growth.
Markets around Asia earlier Friday fell by as much as 3.0 per cent as renewed worries about the impact of a meltdown in the US high-risk housing market erased the euphoria over a US interest rate cut Wednesday.
The Dow Jones Industrial Average closed up 0.20 per cent at 13,595.10 in volatile trade, coming back from intraday losses of more than 100 points.
The Nasdaq composite increased 0.56 per cent to finish at 2,810.38 and the Standard & Poor's 500 broad-market index added 0.08 per cent to 1,509.65.
The market action came a day after a punishing decline of more than two per cent for the main US indexes amid growing concerns about the impact of the US housing and credit crisis on the financial sector.
The US government said employers added 166,000 new jobs in October, defying forecasts of weak growth and suggesting the economy was holding up despite housing and credit market woes.
"The employment data is a stark reminder that the economy is a long way from recession," said Dick Green, analyst at Briefing.com.
"The market remains very volatile and will continue to be sensitive to bad news from the financial sector, but as long as the economy stays out of recession, stocks represent good value."
The news from Washington moved markets in London, Paris and Frankfurt off midday lows but not enough to secure a positive finish to the week.
The London FTSE 100 index shed 0.84 per cent to close at 6,530.60, while in Paris the CAC 40 fell 0.18 per cent to 5,720.42. The Frankfurt Dax lost 0.40 per cent to end the week at 7,849.49.
The Euro Stoxx 50 index of leading eurozone issues fell 0.15 per cent to 4,408.70.
On the currency market the dollar plunged to another record low against the euro, as the single European currency struck 1.4528 dollars for the first time.
The surging euro has dampened sentiment in the 13 nations that share the currency, with political and corporate leaders fearing it will reduce the competitiveness of eurozone exports and stifle growth.
Markets around Asia earlier Friday fell by as much as 3.0 per cent as renewed worries about the impact of a meltdown in the US high-risk housing market erased the euphoria over a US interest rate cut Wednesday.