No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
Market latest
FTSE 100 | FTSE 250 | Paris CAC 40 | Dow Jones | NASDAQ
9106.31 |
37.73 (0.42%)
21827.84 |
128.50 (0.59%)
44016.62 |
428.04 (0.98%)
20970.59 |
320.46 (1.55%)
7622.68 |
76.52 (1.01%)
NaN |
0.00 (0.00%)
Prices delayed by at least 15 minutes
(Sharecast News) - European shares opened higher, despite last week's weak US jobs data that enraged US President Donald Trump so much that he sacked the respected head of the country's Bureau of Labor Statistics, while UK lenders surged on the back of a court ruling in their favour on motor finance commissions.
The pan-regional Stoxx 600 index was up 0.15% to 536 points at 0819 BST with most major bourses higher.
On Friday the BLS reported 73,000 nonfarm payroll gains for June, well below expectations, with a sharp revision downwardof 258,000 jobs from the previous two months. Trump fired BLS head Erika McEntarfer, accusing the agency of manipulating the figures without citing any evidence.
"If the US sees NFP figures under 50,000 for six months in a row, that's considered a recession signal. So, the US may already be halfway there," said Swissquote Bank analyst Ipek Ozkardeskaya.
"The good news - for Donald Trump - is that recession fears have turbocharged rate cut expectations. After Friday's weak jobs report, the probability of a September Federal Reserve (Fed) rate cut jumped from 38% to above 80%. The US 2-year yield, which tracks rate expectations, dropped sharply from near 4% to below 3.70%."
"But the bad news is that a weak economy wasn't part of Trump's promise. Cutting rates at the wrong moment won't magically rescue markets, and scapegoating the BLS for the outcome of his administration's chaotic policies risks damaging the credibility of US economic data."
Switzerland's SMI index was down 1.5% lower as traders assessed the impact of US President Donald Trump's decision to slap the country with a 39% tariff.
The news hit luxury goods maker Richemont, which fell 2.66% and logistics heavyweight Kuehne & Nagel, down 2.62%.
In other equity news, shares in UK lenders Lloyds Bank and Close Brothers rose after a Supreme Court decision last week rule in favour of motor finance companies over commissions paid to car dealers. The industry had been braced to pay out billions in compensation to customers.
Reporting by Frank Prenesti for Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.