Thu, 09 Jul 2020

Wall Street takes a breather after weak employment data

Lola Evans
05 Jun 2020, 08:44 GMT+10

SYDNEY, Australia - Wall Street took a breather on Thursday following more than a week of protests across the U.S., and weak U.S. employment data ahead of the Non-farm Payroll report release.

Two of the major indices closed in the red, while the other made a limp gain.

"We were pretty overvalued going into this week,"Chris Zaccarelli, chief investment officer, Independent Advisor Alliance, Charlotte, NC told the Reuters Thomson news agency on Thursday. "It's not surprising to see a pullback."

The comeback over recent weeks however has been remarkable. According to Reuters, the Nasdaq, the S&P 500 and the Dow are now only 2%, 8% and 11% short of their respective record highs set in February.

"This market has gone up so far so fast there's a lot of people saying, 'I'm going to take a little profit,'" Jim Paulson, chief investment strategist at The Leuthold Group in Minneapolis told the news agency Thursday.

At the close of trading Thursday, the Dow Jones Industrial Average was up 11.93 points, or 0.05%, at 26,281.82.

The Standard and Poor's 500 fell 10.52 points, or 0.34%, to 3,112.35.

The Nasdaq Composite was off 67.10 points, or 0.69%, at 9,615.81.

The big mover on Thursday was the euro, which soared above 1.1300 following the ECB decision to inject an additional €600 billion to its quantative easing.

Other currencies too rallied against the embattled greenback, although the Japanese yen eased.

The euro finished the New York session Thursday around 1.1338. The British pound jumped to 1.2598. The Swiss franc rallied to 0.;9551.

The Canadian dollar rose to 1.3498. The Australian and New Zealand dollars were sharply higher at 0.6946 and 0.6464 respectively.

The Japanese yen eased to 109.15.

On overseas equity markets, the FTSE 100 in London dropped 0.64%. The German Dax was down 0.45%, while the CAC 40 in Paris declined 0.21%.

On Asian markets, the Nikkei 225 in Japan was ahead 81.98 points or 0.36% at 22,695.74.

Hong Kong's Hang Seng gained 40.68 points or 0.17% to 24,366.30.

The Australian All Ordinaries advanced 47.10 points or 0.78% to 6,112.00 after Prime Minister Scott Morrison unveiled a fourth economic stimulus package, this time aimed at the construction sector.

In China the Shanghai Composite dipped 4.12 points or 0.17% to 2,919.25.

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