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03/07/24
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Global Shares Higher on Soft U.S. Labor Market Data
On Wednesday, global shares rose after soft U.S. labor market data that firmed investor expectations that the Federal Reserve would cut interest rates later this year.
On Wednesday, U.S. Labor Department data showed that first-time claims for unemployment benefits rose 238K the week that ended on June 29, slightly higher than expectations and indicating that labor market conditions were softening.
MSCI’s index of global stocks gained 0.60% to 811.63, while the broad STOXX 600 index in Europe added 0.81%.
The lead portfolio strategist at Natixis Investment Managers, Jack Janasiewicz, said growth has been slowing but was closer to trend, with the potential for the Fed to begin reducing rates by Sept., and earnings which have still been pretty good.
On Wall Street, the Nasdaq and benchmark S&P 500 were advancing with materials, utilities and technology stocks among the top gainers. Healthcare equities were pushing the Dow down.
The Nasdaq Composite gained 0.50% to 18,119.62, the S&P 500 gained 0.24% to 5,521.98 and the Dow Jones Industrial Average fell 0.19% to 39,259.90.
Janasiewicz added that from a seasonality perspective, the first two weeks of July are normally good, and those seasonal patterns were being followed in that the economic numbers are still pointing to the economy slowing, not a slow economy.
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