Markets recover some ground early Monday but questions remain
LONDON (AP) — Global stock markets recovered some recent lost ground Monday in the wake of last week’s U.S. jobs data. However, questions over whether the recent sell-off in markets, which saw the Dow Jones industrial average in the U.S. slip into negative territory for the year, was over.
U.S. stocks are opening mostly higher. The Standard & Poor’s 500 index edged up two points, or 0.1 percent, to 1,928 in the first few minutes of trading Monday.
The Dow Jones industrial average rose 14 points, or 0.1 percent, to 16,509. The Nasdaq composite rose 18 points, or 0.4 percent, to 4,370.
KEEPING SCORE: In early afternoon trading, France’s CAC-40 rose 0.8 percent to 4,236 while Germany’s DAX rose 0.2 percent to 9,230. Britain’s FTSE 100 rose 0.5 percent to 6,711. Futures suggested a solid Wall Street rebound – Dow futures were up 0.3 percent while the broader S&P 500 futures rose by the same rate too.
ANALYST TAKE: “Despite this slightly positive start to the week, there does appear to be a little caution in the markets,” said Alpari analyst Craig Erlam. “Investors are a little concerned that the sell-off which started last week is not over and could lead to something much bigger.”
US JOBS: Last Friday’s U.S. employment data helped calm the mood in markets. The figures showed the U.S. generated more than 200,000 jobs for a sixth straight month. At the same time, most economists don’t think the pace of job growth is enough to cause the Federal Reserve to speed up its timetable for raising interest rates. Most still think the Fed will start raising rates to ward off inflation around mid-2015.
PORTUGESE BANK BAILOUT: In Europe, the main piece of news was the announcement by Portugal’s central bank late Sunday that it will provide 4.9 billion euros ($6.6 billion) in an emergency rescue to prevent the collapse of ailing bank Banco Espirito Santo, one of the country’s biggest financial institutions.
ASIA’S DAY: China’s Shanghai Composite Index jumped 1.7 percent and Hong Kong’s Hang Seng gained 0.3 percent. South Korea’s Kospi added 0.4 percent but Tokyo’s Nikkei 225 ended down 0.3 percent at 15,474.50.
CURRENCIES, OIL: The currency markets were flat from last Friday’s close, with the dollar steady at 102.57 yen and the euro flat at $1.3424. Benchmark U.S. crude for September delivery was down 31 cents at $97.57 per barrel.