Italian vote weighs on markets despite upbeat US jobs data
LONDON — More solid U.S. jobs data on Friday did little to alter the cautious mood in global stock markets as investors braced for Italy’s referendum on constitutional reform over the weekend and as the oil price’s rally fizzled.
KEEPING SCORE: In Europe, Germany’s DAX was down 0.7 per cent at 10,469 while the CAC-40 in France fell 1.1 per cent to 4,511. The FTSE 100 index of leading British shares was 0.7 per cent lower at 6,707. U.S. stock markets were poised for modest losses at the opening bell, with Dow futures and the broader S&P 500 futures down 0.2 per cent each.
US JOBS DATA: U.S. employers added a solid 178,000 jobs in November, nearly matching the average monthly gains this year. The unemployment rate also fell to a nine-year low of 4.9 per cent. The figures have cemented market expectations that the Federal Reserve will raise interest rates again this month. The main question now is whether the Fed will indicate that interest rates will rise faster than anticipated next year.
ANALYST TAKE: “These figures continue to add weight to the argument to raise interest rates at the nearest possible opportunity,” said Paul Sirani, chief market analyst at Xtrade.