Markets mixed as dealers digest jobs data, infrastructure bill

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LONDON — Wall Street rose but other world stock markets wobbled Monday as investors digested bright US jobs data and passage of a huge infrastructure bill.اضافة اعلان

The Dow Jones Industrial Average was up 0.5 percent in early trading while London and Paris were higher and Frankfurt’s blue-chip Dax index was flat in afternoon trading.

Asian markets were mixed at the close of trading.

Markets had surged Friday on blockbuster US job creation data, which showed recovery was well underway in the world’s top economy.
The passage of US President Joe Biden’s $1.2 trillion infrastructure bill added to the optimism, though it could also fuel inflation concerns.

“It’s a new week, yet the same picture of resiliency is taking shape,” said analyst Patrick O’Hare, noting that the infrastructure bill “has provided underlying support along with the continuance of the momentum trade.”

Investors are now awaiting vital US consumer price inflation data due Wednesday.

“The big risk is if we see (a) massive spike in US CPI inflation — unlikely, but not totally out of question,” said Fawad Razaqzada, analyst at ThinkMarkets.
Fed Vice Chair Richard Clarida issued the clearest signal yet that the US central bank is preparing the way for further steps to contain inflation and normalize monetary policy after last week announcing it would begin cutting back its pandemic stimulus.

“While we are clearly a ways away from considering raising interest rates,” Clarida said he believes the “necessary conditions for raising the target range for the federal funds rate will have been met by year-end 2022.”

Oil rallied further after OPEC and other major producers refused to heed US calls last week to ramp up output to meet a surge in demand.

Among individual stocks, Tesla sank after Twitter users voted for the head of the electric car giant, Elon Musk, to sell 10 percent of his shares in a poll he posted on his social media account.

Stocks ‘somewhat uninspiring’ 

“European (stock) markets have kicked off the week on a somewhat uninspiring note, with indices largely treading water off the back of a volatile week just gone,” said IG analyst Joshua Mahony.

Wall Street’s three main indexes clocked up records last week after figures showed more than half a million new US jobs were created last month, with hiring rebounding as new infections fall across the country. Figures for the previous two months were also revised up.

However, optimism continues to be held back by worries about inflation, which has surged this year owing to a pick-up in demand, a spike in energy prices and supply chain snarls — forcing central banks around the world to start rowing back their massive pandemic-era support measures.

The US jobs report was followed Sunday by China saying exports had soared by a better-than-expected 27.1 percent in October as factories kept goods flowing out despite power outages in recent months caused by emission reduction targets, the surging price of coal and supply problems.

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