Global stock markets edge down after weak US jobs data

Stock markets worldwide dipped yesterday after April US employment data showed the fewest jobs added in seven months, adding to concerns over economic growth, while short-dated Treasury yields sank.

Non-farm payrolls increased by 160,000 jobs last month, far below the 202,000 economists polled by Reuters had forecast on average.

The number cast doubts on whether the Federal Reserve will raise interest rates before the end of the year.

US interest rates futures suggested traders see a 7 per cent chance of the Fed raising rates at its June 14th-15th meeting, down from 14 per cent on Thursday, data showed. US and European shares weakened after the jobs data.

DUBLIN

Dublin’s Iseq was roughly flat at 6,038. Packaging group

Smurfit Kappa

was among the strongest performers, rising nearly 3 per cent to €23.68 on the back of a trading statement, after chief executive

Tony Smurfit

said he was comfortable with analyst earnings forecasts.

Financial stocks fared less well with both Bank of Ireland and Permanent TSB down 1.2 per cent and 5 per cent respectively at €0.23 and €2.45.

Ryanair traded down 1.5 per cent at €12.76 following weaker numbers from rival EasyJet and forecasts of weaker yields over the summer.

Building materials group CRH was up nearly 1 per cent at €24.86 following positive data about US housebuilding.

Hotel group Dalata rose 1.6 per cent to €4.35 ahead of announcing the purchase of a property in Cork, where it plans to build a 121-room hotel.

LONDON

The London market ended a bruising week edging higher, despite warnings over global economic uncertainty from Holiday Inn owner

InterContinental Hotels

Group (IHG) and disappointing US jobs data.

IHG said overall room revenue growth in its first quarter stood at 1.5 per cent, although it was dragged back by weak oil markets, the earlier timing of Easter and political uncertainty in some Middle East markets.

FTSE 250 insurer Hastings said that revenues rose 22 per cent to £132.7 million in the first quarter as the firm increased its market share.

The number of customers on its books grew 17 per cent to 2.1 million and Hastings’ share of the private car insurance market also increased to 6 per cent from 5.3 per cent. Shares lifted 0.8p to 176.8p.

EUROPE

European shares fell, with steelmaker ArcelorMittal among the worst performers. The pan- European FTSEurofirst 300 index closed 0.3 per cent lower at 1,303.30 points. The FTSEurofirst is down around 9 per cent so far in 2016.

ArcelorMittal fell 1.2 per cent after the world's largest steelmaker kept its guidance unchanged.

Among stocks gaining ground was Monte dei Paschi di Siena , which rose 2.4 per cent after the Italian bank reported better-than-expected first-quarter results.

NEW YORK

US stocks were lower after April payrolls data showed employment gains hit a seven-month low, casting doubts about the health of the economy and the likelihood of an interest rate hike by the end of the year.

Early on the Dow Jones industrial average was down 27.32 points, or 0.15 per cent, at 17,633.39, the S&P 500 was down 7.35 points, or 0.36 per cent, at 2,043.28 and the Nasdaq Composite was down 27.03 points, or 0.57 per cent, at 4,690.06.

Seven of the 10 major S&P 500 sectors were lower, with the health index’s 1.33 per cent fall leading the decliners.

Ireland-domiciled Endo International slumped 40 per cent to $15.95 after the drugmaker slashed its 2016 revenue and profit forecasts.

The stock dragged down other specialty drugmakers, such as Horizon Pharma, Mallinckrodt and Valeant.

– (Reuters)