US equities rallied on Friday following stronger-than-expected September job gains, leading to positive movement across global markets. Major US indices experienced notable increases, with the S&P 500 up 0.9%, the Dow Jones climbing 0.81%, and the Nasdaq rising by 1.22%. For the week, the S&P 500 saw a modest 0.22% gain, while the Dow increased 0.09%, and the Nasdaq added 0.1%.
US Employment Data Boosts Market Confidence
In September, nonfarm payrolls increased by 254,000, surpassing estimates of 140,000 and the 12-month average of 203,000. Additionally, revisions for July and August added 77,000 more jobs, further demonstrating the strength of the labor market. The unemployment rate dipped to 4.1%, while hourly earnings grew by 4% year-on-year. This data supports the belief that the US economy is achieving a “soft landing,” avoiding a major recession while gradually cooling down.
European and Asian Markets Respond to US Optimism
The positive sentiment from the US carried over to European markets, where the STOXX 50 rose by 0.7%, driven by financial equities such as UniCredit and BBVA. However, for the week, the STOXX 50 ended down 2.8%, impacted by rising Middle East tensions and waning enthusiasm over China’s stimulus measures.
Asian markets opened strong on Monday, with Japanese equities leading gains. The Nikkei 225 and TOPIX surged up to 2% due to a weakening yen and hopes of further Chinese stimulus. Hong Kong’s Hang Seng gained 0.6%, while South Korea’s KOSPI and Australia’s ASX 200 also posted gains.
Oil Prices Dip Amid Profit-Taking and Supply Concerns
Oil prices, which rallied last week due to Middle East tensions and strong US payroll data, eased slightly in Asian trading on Monday. With China’s markets closed for the Golden Week holiday, limited trading volumes contributed to the price dip. However, concerns over supply disruptions due to the Israel-Hamas conflict continue to dominate market sentiment, alongside the upcoming US inflation data.
Corporate Earnings Season and Interest Rates in Focus
Looking ahead, European equity markets are expected to open mixed, with Germany’s DAX set for slight gains, while indices such as the FTSE 100 and CAC 40 could see minor losses. Meanwhile, US equity futures are pointing to a cautious start on Wall Street as investors anticipate signals from the Federal Reserve regarding interest rates and await the start of the corporate earnings season later in the week.
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