A roundup of trading on major world markets:
NEW YORK – US equity markets have given up early gains as investors turned cautious ahead of the August jobs market report, which could weigh heavily the Federal Reserve’s upcoming interest rate decision.
The Dow Jones Industrial Average finished up 23.38 points (0.14 per cent) at 16,374.76.
The S&P 500 gained 2.27 (0.12 per cent) at 1,951.13, while the Nasdaq Composite slid 16.48 (0.35 per cent) at 4,733.50.
Index gains topped one per cent in morning trade helped by a reasonably strong report on the US economy’s services sector in August, but selling intensified in the afternoon led by major tech stocks.
Apple lost 1.75 per cent, Facebook 2.0 per cent, Amazon 1.1 per cent and Netflix, facing a tough new challenge from streaming video rival Hulu, shed 4.2 per cent.
LONDON – European stocks shot higher as investors enjoyed a respite from volatile Chinese markets, closed for a long holiday weekend, and took cheer from hints of more central bank stimulus.
London’s benchmark FTSE 100 index climbed 1.82 per cent to close at 6,194.10 points, the CAC 40 in Paris gained 2.17 per cent to finish at 4,653.79, while Frankfurt’s DAX 30 jumped 2.68 per cent to end at 10,317.84.
The European Central Bank boosted market sentiment when president Mario Draghi said policy makers were ready to ramp up its contentious bond purchase program – known as quantitative easing – if more stimulus is needed in the single currency area.
The ECB kept its key interest rates unchanged at record lows but cut its growth and inflation forecasts for 2015-2017, noting the downside risks from low oil prices and the economic slowdown in China.
HONG KONG – A sense of calm returned to Asian trading after weeks of China-fuelled volatility as a public holiday on the mainland allowed investors to focus on upbeat US data, helping push riskier assets higher.
Tokyo ended 0.48 per cent higher and Seoul ended slightly higher, while there were also comfortable gains for Singapore and Taipei.
Shanghai and Hong Kong were closed to mark World War II Victory Day commemorations in China.
However, lingering concerns about Australia’s economy kept Sydney in the red, with the ASX 200 ending down 1.44 per cent, while the Aussie dollar struggled around six-year lows marginally above 70 US cents.
WELLINGTON – The S&P/NZX 50 Index fell 20.52 points, or 0.4 per cent, to 5569.69.
