Global Stock Markets Start September on a Positive Note
02 Sep 2021 · 3rd Party Analysis
- Equities in Europe and the US push moderately higher as investors kick into gear for September
- Friday’s non-farm payrolls to reveal the pace of labor-market growth for August
European stocks and their Wall Street counterparts kicked off the first trading day of September with moderate gains. Continued optimism carried the Nasdaq Composite to a new record close, while the S&P500 and the Stoxx Europe 600 hover 0.2%, and 0.6% from their records, respectively.
Major European indexes closed Wednesday’s session mostly higher. The region-wide Stoxx 600 benchmark gained 0.48% to close at 473.12. Spain’s IBEX35 was the best performer of the day, adding 1.64%, followed by France’s CAC40, up 1.18%. UK’s FTSE100 advanced 0.42%, while Germany’s DAX slipped in the red, lower by 0.07%.
The broad move higher was led by retail and travel stocks, each rising 1.8%. Investors piled into shares across sectors, shaking off concerns of a sharp pick up in the inflation figures for August. Earlier in the week, an economic report showed annual inflation rose 3% in August, up from 2.2% in the previous month.
Inflation has also been among the main risks for the rich valuations of stocks in the US. A sharp rise in prices, coupled with growing uncertainty around the Covid-19 threat, is prompting investors to take a more cautious approach to the market as September trades are hitting their stride.
Wall Street equities mostly wobbled during the session on Wednesday. The Dow Jones Industrial Average was under pressure throughout the day and ultimately ended lower by about 50 points. The S&P500 gained less than 2 points to finish the day in the green. The Nasdaq Composite claimed a fresh record as the technology index ticked up 0.3% to a record close of 15,309.38.
Cryptocurrencies Start September Positively
A lackluster ADP jobs report for August showed hiring by the US private sector rose by much less than anticipated. Private payrolls increased by 374,000 in August, well below analyst estimates of 613,000. While the figures were above July’s 326,000 new private-sector jobs, some economists say the Delta variant of Covid-19 could have dented the job market recovery.
The ADP data came ahead of Friday’s non-farm payrolls report that is expected to show the world’s largest economy added as much as 720,000 new jobs in August. For July, US employers added 943,000 new hires to the labor market, the strongest gain in 11 months.
In other markets, gold traded above $1,810 per troy ounce early on Thursday, while the euro kept firm against the US dollar, hovering around $1.1840. The British sterling added 0.1% this morning to trade at $1.3770.
Cryptocurrencies have shifted gears as September kicked in. Bitcoin climbed to the $50,000 milestone earlier today, gaining over 3% on the day. Ether, the second-biggest digital asset, traded sideways after it rallied as much as 10% yesterday to a three-month high of $3,780.
Bitcoin’s August gains propelled its price higher by about 15%, while ether added 36% in August, far outpacing its bigger rival. The cryptocurrency market now commands a valuation of more than $2.2tn. The original coin holds a market share of roughly $930bn, or 42%, of the entire market capitalization.