European Markets Rebound on Strong US Jobs Data, Maersk Bucks Trend
October 4, 2024
London, UK - European markets surged higher on Friday, building on the momentum from overnight gains on Wall Street, as investors cheered a better-than-expected US jobs report.
The Stoxx 600, which tracks the region’s largest companies, rose 0.8% in early trading, with gains led by the technology and consumer goods sectors.
The US Labor Department’s September jobs report showed 263,000 jobs added, surpassing economists’ forecasts and alleviating concerns about a potential recession. The report also revealed a drop in the unemployment rate to 3.5%, its lowest level since 1969.
“Today’s jobs report has provided a much-needed boost to markets, reinforcing the notion that the US economy remains resilient,” said Markus Schomer, chief economist at PineBridge Investments.
However, not all stocks shared in the optimism. Danish shipping giant A.P. Moller-Maersk slid 5% after cutting its full-year earnings forecast, citing weakening global container demand.
“Maersk’s downbeat outlook serves as a reminder that global trade headwinds persist, and companies exposed to these trends will continue to face challenges,” said Helane Becker, an analyst at Cowen.
Despite Maersk’s decline, the broader market sentiment remained upbeat, with investors taking cues from the positive US economic data.
London’s FTSE 100 added 0.6%, while Paris’s CAC 40 and Frankfurt’s DAX 40 gained 0.9% and 1.1%, respectively.
The rally in European markets follows a strong session on Wall Street, where the S&P 500 and Nasdaq Composite closed at record highs.
As the trading day unfolds, investors will continue to monitor economic indicators and company updates for further direction.
Market Snapshot:
- Stoxx 600: +0.8%
- FTSE 100: +0.6%
- CAC 40: +0.9%
- DAX 40: +1.1%
- Maersk: -5%
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