Investors’ attention on Wednesday was focused on new data on the U.S. labor market from payroll processor ADP. It provides data on corporate employment in the United States. Meanwhile, interest rate fears continue to hang over the markets.
October 4, 2023
ADP’s figures come ahead of the US government’s key jobs report due out on Friday. A strong labor market gives the U.S. Federal Reserve more room to raise interest rates further and keep them higher for longer. Fears of higher interest rates have caused considerable unrest in stock markets recently.
Tuesday saw a stronger-than-expected number of vacancies in the US. As a result, red price signals were seen in Asia. Tokyo’s Nikkei fell 2.1 percent and Hong Kong’s Hang Seng fell 1.1 percent. In Seoul, Cosby lost 2.4 percent and in Sydney All Ordinaries lost 0.8 percent.
The oil market is also paying attention. Oil cartel OPEC+ decides on production. OPEC+, led by Saudi Arabia and Russia, has been cutting production to prop up prices. No major policy changes will be announced.
Oil prices fell slightly on Wednesday morning. U.S. crude was down 0.3 percent at $88.95 a barrel, while Brent was down 0.3 percent at $90.69 a barrel.
In Amsterdam, informant RELX could move after a buy recommendation from investment bank Goldman Sachs. Investment adviser Oddo BHF increased advice for lighting company Signify and Bernstein brought in an increase in advice for Air France-KLM, which announced after trading on Tuesday that it would take a major stake in ailing Scandinavian company SAS.
Also, ABN AMRO announced a strategic partnership with Motive Partners, which focuses on start-ups in the fintech sector.
The Amsterdam AEX index closed 0.6 percent lower at 719.67 points on Tuesday. London, Paris and Frankfurt saw price losses of up to 1 percent. Stocks in New York fell 1.9 percent.
The euro was at $1.0466 on Wednesday morning, compared with $1.0456 at the close in Europe a day earlier.
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