Global stocks, oil fall on US jobs data
The Asian automaker is trying to burnish a reputation for quality and banish the jibes of the past, when its Accent sub-compact was dubbed the "Accident" and its boxy Trajet 7-seater the "Tragic".
Global stocks and crude oil fell on Monday as investors reacted to the surprisingly sharp slowdown in US jobs growth reported last week, which raised concerns about the strength of the world's largest economy.
Stocks on Wall Street and crude oil futures prices fell more than 1 per cent on the first trading day after the US Labor Department reported the March jobs data. US equity markets were closed on Friday for the Good Friday holiday.
The government reported that just 120,000 jobs were added in March, far below market expectations for 203,000 new jobs and the smallest increase since October. Trade was light, as major markets in Europe and Canada, as well as some markets in Asia, including Australia and Hong Kong, were closed on Monday.
"We're seeing more overhang from Friday's weak payrolls report," said Gennadiy Goldberg, interest-rate strategist at 4Cast, Ltd. in New York. "It definitely suggests that it's not a one-way trip out of the mess we're in at this point. The market was getting a little too optimistic on the data front."
The Dow Jones industrial average was down 154.24 points, or 1.18 per cent, at 12,905.90. The Standard & Poor's 500 Index was down 18.88 points, or 1.35 per cent, at 1,379.20. The Nasdaq Composite Index was down 39.27 points, or 1.27 percent, at 3,041.23.
MSCI's all-country world equity index slipped 0.8 per cent to trade near lows last seen a month ago. The labor market report raised concerns about whether the US economy is strong enough to b oost g rowth elsewhere in the world as Europe's debt crisis resurfaces and worries remain about China's ability to avoid a hard landing.
China on Monday reported a jump in the annual inflation rate in March that topped expectations, rising to 3.6 percent as food prices remained volatile. But economists believe price pressures will moderate over the rest of the year, giving Beijing the flexibility to ease monetary policy to support growth.
US Treasury debt prices rose, reflecting expectations that the US payrolls report increased the chances of a third round of monetary easing measures by the Federal Reserve. The benchmark 10-year Treasury note was up 6/32 higher in price to yield 2.03 per cent.
Trade in US interest rate futures also suggested that investors were betting rates would stay low well into 2014, reflecting the Fed's view on interest rates.
Oil prices fell more than $1 a barrel after Iran agreed to resume talks over its nuclear program, easing fears of a supply disruption in the Middle East. Prices were also under pressure on concerns about the pace of the US economic recovery. Brent crude was down $2.38 a barrel to $121.08. US oil traded $2.41 a barrel lower at $100.90.
The dollar dropped to a one-month low against the yen, weighed by the slowdown in US jobs growth, which bolstered views the Fed could yet ease policy further to boost the economy. The dollar against the yen was down 0.40 per cent at 81.29, but Dollar Index was up 0.05 per cent at 79.925. The euro was down 0.18 percent at $1.3071.
Spot gold prices fell 83 cents, or 0.1 per cent, to $1637.10 an ounce.
Copyright @Thomson Reuters 2012