A roundup of trading on major world markets:
NEW YORK – US stocks were broadly down on Friday despite better-than-expected official data showing that job creation surged and the unemployment rate fell a fourth straight month in December.
In closing trade the Dow Jones Industrial Average was down 54.66 points (0.44 per cent) at 12,361.06.
The broad-based S&P 500 slipped 3.19 points (0.25 per cent) to 1,277.87.
The tech-dominated Nasdaq Composite bucked the trend, finishing up 4.36 (0.16 per cent) to 2,674.22.
The Labor Department data on the jobs situation in December showed 200,000 net jobs created and the jobless rate falling to 8.5 per cent from a revised 8.7 per cent in November.
The data of recent weeks “have been signalling firmer labour market conditions, and now they’re here,” said Ian Shepherdson of High Frequency Economics.
LONDON – European stocks closed mostly lower as weak EU data offset a much better-than-expected US jobs report, upping the pressure on the euro as concerns mount over the single currency’s future.
Dealers said the US figures did give stock markets a brief boost but the gains were soon lost, with the euro slumping to fresh 16-month lows as investors compared the prospect of recession in Europe with solid US growth.
They said the data confirmed the view that the world’s biggest economy is finally turning the corner and highlighted the problems in the eurozone where Spain and Italy struggle to stay afloat.
The US unemployment rate dropped to 8.5 per cent in December, the lowest level in nearly three years, as hiring surged more than expected to 200,000, topping forecasts for 150,000.
A litany of bad news from Spain and Italy on their stalled economies and strained public finances is driving fears that they could be next to need EU-IMF bailouts after Greece, Ireland and Portugal.
A warning by International Monetary Fund chief Christine Lagarde that the IMF would cut its 2012 growth forecasts added to the negative tone while here remarks that the euro was unlikely to “vanish” this year only stoked concerns about the currency.
By the close, London managed to buck the trend with the FTSE index of leading companies gaining 0.45 percent to 5,649.68 points but in Paris, the CAC-40 index fell 0.24 per cent at 3,137.36 points and in Frankfurt the DAX 30 dropped 0.62 per cent to 6,057.92 points.
Milan lost 0.82 per cent and Madrid was down 0.49 per cent.
The euro tumbled to $US1.2698, a level last seen in early September 2010, extending losses after breaching $US1.28 earlier this week as the US data supported the dollar.
HONG KONG – Asian markets mostly fell and the euro continued its struggles as fresh concerns over Spain and Italy rattled investors despite another strong batch of jobs data from the United States.
Tokyo fell 1.16 per cent, or 98.36 points, to 8,390.35, Sydney was 0.83 per cent off, giving up 34.1 points to 4,108.5 and Seoul shed 1.11 per cent, or 20.60 points, to 1,843.14.
Hong Kong lost 1.17 per cent, or 220.35 points, to close at 18,593.06 but Shanghai bucked the regional trend and rose 0.70 per cent, or 14.95 points, to 2,163.40.
In Spain the new economy minister warned that banks may face up to E50 billion ($A62.60 billion) in bad loan provisions.
Luis de Guindos’ estimate, provided in a Financial Times interview, was higher than many forecasts and compared with a European Banking Authority finding that the five biggest banks needed E26 billion ($A32.55 billion) more in capitalisation.
The country’s new government also warned separately that the social security fund’s accounts were worse than had been feared.
In France, whose top notch AAA status is under threat, a bond auction sold its planned amount of debt with only modest increases in its borrowing price but saw lower demand, a lack of enthusiasm also seen in an operation by Germany on Wednesday.
And Italian Prime Minister Mario Monti rattled nerves with an unannounced visit to Brussels. Traders became nervous despite diplomatic sources saying Monti, who meets French President Nicolas Sarkozy on Friday in Paris, was making only a private visit.
The euro was at Y98.75, up from New York, where it fell to an 11-year low of Y98.48.
The dollar was at Y77.15, unchanged from New York.
WELLINGTON – Wellington ended 0.93 per cent, or 30.69 points, lower at 3,253.43.
