Global stocks recover as US jobs data send positive inflation message

Global stocks rose on Friday as US jobs growth slowed more than expected in June, but remained strong.

A cooling labour market could mean that policymakers’ efforts to slow inflation through interest rate rises have begun to take hold on employers.

Dublin

Euronext Dublin climbed 86 basis points as a number of stocks rallied following what one trader described as a “beating” on Thursday.

“A number of stocks took a bit of a beating on Thursday,” she said. “It wasn’t a full recovery today but it was a bit better at least. Thursday was such an awful day.”

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Among those to claw back some losses was Paddy Power Betfair parent, Flutter Entertainment, which climbed 1.9 per cent.

Other stocks that recovered ground included packaging company Smurfit Kappa, which finished the day up 2.4 per cent.

Elsewhere, hotel operator Dalata Group climbed 1.6 per cent, while insulation specialist Kingspan was up 1.2 per cent by close of business.

Among the banks, AIB was up 0.84 per cent, while Bank of Ireland was half a percentage point weaker. A trader described it as a “lacklustre” day for the financials.

“Utilities and healthcare, which were the strongest on Thursday, were the weakest today, so it was a bit of a relief rally,” the trader added.

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London

London’s FTSE 100 continued its path of decline as international peers recovered after a volatile week marred by concerns over the US economic outlook.

The downbeat investor sentiment lingered for the FTSE 100, which dipped 0.32 per cent on Friday after closing at its lowest level since early November on Thursday.

In company news, shares in Coca-Cola Hellenic Bottling Company jumped after the FTSE 100-listed company upgraded its annual profit guidance. Shares in the business closed 5.1 per cent higher.

Shares in MJ Gleeson were 0.5 per cent lower after the housebuilder said it made fewer sales in the latest financial year, as buyers feel the impact of higher borrowing costs.

Europe

European shares trimmed their weekly decline slightly as investors assessed how the latest US jobs data will affect Federal Reserve monetary policy.

The Stoxx 600 Index was about 0.1 per cent higher by the close, paring its 0.5 per cent advance following the employment figures. It fell 3.1 per cent on the week – its biggest such decline since mid-March.

Chemicals and miners led the gains, while media and healthcare stocks dropped the most. Novartis dropped as a US judge ruled its Entresto patent claims were invalid.

Elsewhere, Germany’s Dax advanced by 0.48 per cent and France’s Cac 40 closed 0.42 per cent higher after partially recovering Thursday’s losses.

New York

The benchmark S&P 500 inched higher in choppy trading after a mixed employment report signalled resilience in the labour market in the face of the Federal Reserve’s aggressive monetary tightening.

Traders stuck to bets that the Fed will raise its benchmark interest rate this month to a 5.25-5.5 per cent range, but likely expect no more hikes beyond that.

At 12.05pm eastern time the Dow Jones Industrial Average was down 0.08 per cent, the S&P 500 was up 0.21 per cent and the Nasdaq Composite was up 0.49 per cent.

Tesla rose 1 per cent after it said it would offer new buyers of its top-selling electric vehicles in China a cash bonus equivalent to almost $500 if they have a referral from an existing owner.

Levi Strauss & Co tumbled 7.2 per cent as the denim clothing maker cut its annual profit forecast on Thursday.

US-listed shares of Alibaba gained 7.9 per cent after Chinese authorities said they will impose a $984 million fine on Ant Group, ending the affiliate fintech company’s years-long regulatory overhaul. (Additional reporting: Agencies)