SP: Global market remains flat as US economy takes a slow pace
At closing, British FTSE 100 stays at 4,836.28 while France’s CAC -0 dips .3 percent at 3,340. Germany DAX is almost constant at 5,834.21. Europe’s dry movement of stock trading is somewhat favorable as the recent jobs report in the United States gives them more favorable market weather ahead.
With the Independence Day moving on, the Wall Street remains closed for the holiday. But the jobs report in the United States which shows figures less than what is expected somehow troubles the volatile Asian market which is recently adjusting to a revalued Chinese currency.
Kospi of South Korea records .2 percent rise at 1,675.37 while Australia’s S&P/ASX 200 plunges .4 percent at 4,221.1. Japan’s Nikkei climbs up a bit with .7 percent at 9,266.78 while the Shanghai Index performs the other way, down .8 percent at 2,363.95. In general, stocks trading in Asia reflects an investor attitude of “wait-and-see” as the speculations of a possible US economic downturn is yet to be sifted away.
China’s bad stocks trading performance is said to have been a result of the government’s 2009 stimulus which offers heavy domestic borrowings and massive infrastructure expenses. Any default to standing debts by local companies accessing huge borrowings last year puts lenders uneasy.
The dollar gains to 87.76 over the Japanese yen but the Euro falls 1.2527 against the dollar compared to its previous 1.2556. Benchmark crude for next month grows 17 cents at opening 72.31 per barrel and closes 72.1.
The trouble stirring up the global markets is attributed mainly to the US jobs report which is indicative of a slow-pace recovery of US economy. Adding to it is the falling mortgage interest rates and sales in real estate properties. The US manufacturing sector also has been lesser active in the past months.
