October 17, 2021

Dubai Week

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European stocks fall ... and "Japanese" follow Wall Street

European stocks fall … and “Japanese” follow Wall Street

European stocks fell on Friday on the back of a slump in technology, offsetting the impact of oil and auto stocks’ gains, while investors were cautious ahead of US job data.
Shares of the Pan-European STOXX 600 index fell 0.2 percent, while technology stocks fell 0.9 percent, while oil and gas stocks rose 1.1 percent.
However, the benchmark index was on the path to weekly gains as relief was lifted as the US debt ceiling was temporarily lifted, dispelling fears that higher energy costs would exacerbate inflation.
Shares of UK travel companies, including British Airways owner IAG, Whitefred and Ryanair, rose 0.5 to 2.9 per cent.
However, shares of TUI, a UK-listed travel company, fell 12.3 percent.
Japanese stocks
In Tokyo, the Japanese Nikkei index rose for the second consecutive session, tracking gains on Wall Street on Friday, and investors bargained after a sharp decline this month, while Toyota Auto helped close the Topics index higher for the first time in ten sessions. .
The Nikkei rose 1.34 percent to close at 28,048.94 points, gaining 2.3 percent in early trade as investors waited for industrial company Yaskawa Electric to begin its earnings season. The broader Topix index was up 1.15 percent at 1961.85.
During the week, the Nikkei fell 2.51 percent due to concerns over the economic slowdown in China and the US. During the month, the index lost 4.77 percent.
Wall Street has risen sharply in a broad-based recovery led by key technology companies as easing the conflict over the debt ceiling in Congress has eased fears that the government will default on its debt this month.
“Local stocks have risen on the back of rising foreign markets, but today’s gains are recovering from sharp losses,” said Shiketoshi Kamata, research general manager at Dacipana Bonds.
Shares of Dolota Mortar rose 2.89 percent and Honda Motor Co rose 1.14 percent, while automakers advanced as the yen weakened against the dollar.
Debt ceiling agreement
Wall Street rose sharply on Thursday, with a broad rally led by tech stocks lowering concerns about the possibility of the government repaying its debt this month over a deal on the debt ceiling in front of the US Congress.
Shares of large-cap companies, including Apple, Amazon and Microsoft, rose, and were the biggest supporters of the Standard & Poor’s and Nasdaq indices.
The Senate Treasury Department went one step further with an increase of $ 480 billion in the amount allowed to borrow, preventing another discriminatory conflict until December.
On the other hand, the number of Americans filing for unemployment benefits fell at a three-month high last week, indicating that the labor market is regaining momentum as the latest Covid-19 waves begin to subside.
The market is waiting for the US farm non-wage data to be released on Friday.
“Today’s numbers strengthen expectations that employment will make a big move in the coming months, and I think this is good for the economy,” said Brad Newman, director of market strategy in Alger.
“The market has crossed the wall of concern today because fears about the debt ceiling stagnation have eased and there is growing confidence that employment gains will increase,” he added.
The Dow Jones Industrial Average rose one percentage point to 34,760.34 points, while the Standard & Poor’s 500 index rose 0.83 percent to 4,399.82 points.
The Nasdaq Composite Index was no less fortunate than its predecessors as it rose 1.04 percent to 14653.38 points.
(Reuters)

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