World shares edge down ahead of US jobs data as tech tumbles
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London/Singapore — World shares edged lower on Friday, and were on course for their worst week in more than two months, though gains in safer assets, such as bonds and the dollar, were muted as investors awaited US jobs data to see if it triggers a bigger sell-off.
The pan-European Stoxx 600 index added 0.4%, rebounding from its worst day in more than a month a day before amid a tech-led plunge on Wall Street on Thursday.
Data showed German industrial goods orders rose by a smaller-than-expected 2.8% on the month in July, undermining hopes of recovery for Europe’s largest economy from the coronavirus shock.
MSCI’s broadest index of Asia-Pacific shares excluding Japan fell 1.3% and looked set to snap a six-week winning streak with its biggest weekly loss since April. Japan’s benchmark Nikkei share average closed down 1.1%.
The MSCI world equity index, which tracks shares in 49 countries and had touched record highs earlier on Thursday, shed 0.1%.
“Stock market valuation is rich on a standalone basis, but far less extreme compared to other asset classes. Hence it’s likely a bit too soon to be calling the next bear market even though September 3 did mark the top of the equity market back in 1929,” said Jeroen Blokland, portfolio manager at Robeco.
Futures were under pressure, but not as much as earlier in the session. Nasdaq 100 futures were down 0.8% and S&P 500 futures down 0.2%.
Focus is now on US payrolls figures due at 12.30pm GMT, which could be a selling trigger if an expected slowdown in hiring is deeper than forecast.
“I don’t think a huge number of investors will be adjusting their positions ahead of the US payroll data but because of yesterday’s sell-off there will be a bit more sensitivity to the data,” said James Athey, investment director at Aberdeen Standard Investments. “US jobs data has been pretty consistently awful in a big picture sense. Fundamentally, there is nothing that can happen in payrolls that can tell you much more about the trajectory of the economy.”
Foreign exchange markets were on edge at the possibility and a safety bid helped the dollar cling to gains that have it headed for its best week in more than two months.
The euro, which has fallen from a 28-month peak above $1.20 on talk that the European Central Bank is concerned about its strength, seems to ...
The pan-European Stoxx 600 index added 0.4%, rebounding from its worst day in more than a month a day before amid a tech-led plunge on Wall Street on Thursday.
Data showed German industrial goods orders rose by a smaller-than-expected 2.8% on the month in July, undermining hopes of recovery for Europe’s largest economy from the coronavirus shock.
MSCI’s broadest index of Asia-Pacific shares excluding Japan fell 1.3% and looked set to snap a six-week winning streak with its biggest weekly loss since April. Japan’s benchmark Nikkei share average closed down 1.1%.
The MSCI world equity index, which tracks shares in 49 countries and had touched record highs earlier on Thursday, shed 0.1%.
“Stock market valuation is rich on a standalone basis, but far less extreme compared to other asset classes. Hence it’s likely a bit too soon to be calling the next bear market even though September 3 did mark the top of the equity market back in 1929,” said Jeroen Blokland, portfolio manager at Robeco.
Futures were under pressure, but not as much as earlier in the session. Nasdaq 100 futures were down 0.8% and S&P 500 futures down 0.2%.
Focus is now on US payrolls figures due at 12.30pm GMT, which could be a selling trigger if an expected slowdown in hiring is deeper than forecast.
“I don’t think a huge number of investors will be adjusting their positions ahead of the US payroll data but because of yesterday’s sell-off there will be a bit more sensitivity to the data,” said James Athey, investment director at Aberdeen Standard Investments. “US jobs data has been pretty consistently awful in a big picture sense. Fundamentally, there is nothing that can happen in payrolls that can tell you much more about the trajectory of the economy.”
Foreign exchange markets were on edge at the possibility and a safety bid helped the dollar cling to gains that have it headed for its best week in more than two months.
The euro, which has fallen from a 28-month peak above $1.20 on talk that the European Central Bank is concerned about its strength, seems to ...