Global markets fell on Friday after US jobs data for June came in weaker than expected; fuelling concerns that Europe’s debt crisis is deepening a slowdown in the US economy.
The Dow Jones industrial average closed the day down 124 points, or 1 per cent. The S&P 500 fell 13 points, or 1.6 per cent. The Nasdaq shed 39 points, or 1.3 per cent.
European shares fell on the US jobs data, down 0.8 per cent on the day, and World stocks fell 1 per cent.
The Stoxx Europe 600 index fell 1 per cent to 254.41 on Friday. France’s CAC 40 index dropped 1.9 per cent to 3168.79. The DAX 30 index fell 1.9 per cent to 6410.11 and the FTSE 100 index fell 0.4 per cent to 5662.63.
This morning, Asia stocks fell after a string of negative global developments hit sentiment, including a disappointing U.S. jobs report and weekend comments from Chinese Premier Wen Jiabao highlighting China’s economic pressures followed by an interest rate decrease in China.
Japan’s Nikkei Stock Average and South Korea’s Kospi each dropped 1.1 per cent, while Australia’s S&P/ASX 200 traded down 0.9 per cent. In China, Hong Kong’s Hang Seng Index tumbled 1.4 per cent and the Shanghai Composite Index retreated 1.1 per cent.
The US dollar is currently trading at 1.23 to the euro, 1.55 to the pound and will buy 79.63 Japanese Yen or 8.25 South African Rand.
THE JSE ended weaker on Friday, after weak US jobs data spark a sell-off in general mining stocks.
At the close‚ the JSE all-share index was flat (0.01 per cent) at 34226.21 points‚ while resources lost 0.91 per cent‚ gold shares gave up 1.67 per cent and platinum shed1.31 per cent. Financials inched up 0.1 per cent‚ but banking stocks slipped 0.1 per cent and industrials firmed 0.59 per cent.
South African bonds were weaker on Friday‚ due to the negative impact on the rand from poor US jobs data for June.
At the close, R157 bond was trading at 5.970 per cent from Thursday’s close of 5.900 per cent and Wednesday’s close of 5.930 per cent. The R207 was bid at 7.005 per cent and offered at 6.975 per cent from a previous close of 6.940 per cent and the R186 was trading at 7.855 per cent from 7.785 per cent previously.
Spot gold is currently trading at US$ 1583.53/oz and platinum at US$ 1446.00/oz. Brent crude oil is currently trading at US$ 98.70 per barrel.