Another disappointing week for global stocks amid high yields, a strong dollar and solid US labour market, says Axel Rudolph, Senior Market Analyst at online trading platform IG.
Stocks end week in the red
“The sell-off in global stock indices resumed following much stronger-than-expected US Non-Farm Payrolls which confirmed that the labour market remains tight, putting pressure on the Fed to hike rates one more time. A spike to new 16-year highs in 10- and 30-year bond yields, to 5.05% for the latter, benefitted the US dollar which remains on track for its twelfth straight week of gains.”
European equity indices try to end day on positive note
“European stock indices were initially dragged lower by their US counterparts as the country’s economy added nearly twice as many jobs as expected in September, the most in eight months. They recovered towards the end of the session on short-covering ahead of the weekend, though. Next week traders will focus on German industrial production, US inflation and UK GDP.”
