European stock markets rose on Wednesday as investors grabbed good deals after steep losses last week, but Wall Street was mixed after poor jobs numbers
London, (UrduPoint / Pakistan Point News – March 3, 2021): European stock markets rose on Wednesday as investors grabbed good deals after big losses last week, but Wall Street was mixed after poor figures from the ’employment.
London’s benchmark FTSE 100 ended the day up 0.9% after investors welcomed the government’s latest budget.
Frankfurt increased by 0.3% and Paris by 0.4%.
“After a few days of gains, bullish sentiment in European equities has run out of steam,” said CMC Markets UK market analyst David Madden.
“The main indices started off in bad shape, the DAX 30 set a record, while the CAC 40 hit its highest level in over a year, but the markets have since fallen,” he added. .
He pointed out that rising government bond yields are once again dampening appetite for stocks.
Stock markets sold off sharply last week amid rising yields on US Treasuries, a sign of rising interest rates.
And although the bond market has stabilized this week, traders remain cautious over concerns about asset bubbles – and a possible surge in inflation that could herald long-term interest rate hikes.
– UK taxes and relief – In London, UK Finance Minister Rishi Sunak presented the government’s budget which plans to increase corporate income tax to 25% from 2023 as it attempts to fight the increase in debt incurred to support the economy during Covid- 19 lockdowns.
But a special tax break on business investment has helped soften tax medicine and could encourage businesses to increase spending.
Sunak said on Tuesday he would extend his multibillion-pound leave program by paying the bulk of the wages of millions of workers in the private sector.
Hospitality, travel and real estate companies have rebounded as Britain seeks to reopen its crumbling economy, which fell nearly 10% last year.
The pound, which was just under $ 1.
40 before the budget was announced, fell after the government cut its growth forecast for 2021 to 4.0% from 5.5%, before rebounding.
– Disappointing US jobs figures – Wall Street was mixed late in the morning with the Dow adding 0.5%, but the larger S&P 500 was flat and the high tech Nasdaq Composite slid lower.
Payroll company ADP said private companies in the United States created just 117,000 jobs as of February.
This was much less than the 180,000 expected by analysts and down from a gain of 195,000 in January, suggesting that an expected rebound in the US economy along with widespread vaccination may be slower. to arrive.
Investors will research the US government employment figures on Friday to get a better idea of job market trends.
Oil prices rose sharply on the eve of a major meeting of OPEC + producers.
Asian stocks rose sharply on Wednesday after the previous day’s losses, as investors track global progress in tackling the deadly pandemic.
Bitcoin has rebounded above $ 50,000 following increased investor risk appetite, but has remained below recent highs.
– Key figures around 4.30 p.m. GMT – New York – Dow: + 0.5% at 31,538.76 EURO STOXX 50: + 0.1% at 3,712.25 London – FTSE 100: + 0.9% at 6,675.47 (closing ) Frankfurt – DAX 30: + 0.3% at 14,080.03 (close) Paris – CAC 40: + 0.4% at 5,830.06 (closing) Tokyo – Nikkei 225: + 0.5% at 29,559.10 ( close) Hong Kong – Hang Seng: + 2.7% at 29,880.42 (close) Shanghai – Composite: + 2.0% at 3,576.90 (close) Euro / dollar: LOW at $ 1.2076 from 1.2091 $ at 2200 GMT Pound / dollar: HIGH to $ 1.3986 from $ 1.3955 Euro / pound: LOW at 86.34 pence from 86.64 pence Dollar / yen: HIGH at 106.87 Yen from of 106.69 yen Gross North Sea: + 2.1% to $ 63.99 per barrel West Texas Intermediate: + 2.5% to $ 61.27 per barrel