While US stocks have rallied following the payrolls report, European markets continue to suffer some profit-taking, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Wall Street recovers following payrolls
“Yesterday’s flight to the safety of the dollar has been replaced with buying of that other safe haven, US stocks. The Dow is up 200 points and the Nasdaq 100 has added over 1%. Once more the US economy has demonstrated its overall strength, and while that continues to make a rate cut less likely, it does at least mean than Americans will keep spending. With corporate earnings season just over the horizon, that’s a major relief for investors.”
FTSE 100 slips back to 7900
“European markets have mostly played catch-up to the US drop yesterday, but have already seen some buying at the lows. After yesterday’s yield driven gains in London, today has seen the reverse, though the FTSE 100 still looks in a good place to make further gains thanks to a rosier earnings outlook.”
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