USA Markets Open Down Because of Good News

Gary is off this week - and Econintersect is therefore providing the market open from our syndication partner

European stocks remained sharply lower on Wednesday, as Chinese service sector data added to concern's over a slowdown in the world's second largest economy, while ongoing uncertainty over the future of the Federal Reserve's stimulus program also weighed.

During European afternoon trade, the EURO STOXX 50 plunged 2.02%, France’s CAC 40 retreated 1.68%, while Germany’s DAX 30 plummeted 1.64%.

Follow up:

Markets were jittery after a government report showed that China’s non-manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.

In addition, market sentiment was hit by reports that more Portuguese government ministers may resign, after the country’s finance minister and foreign minister dramatically stepped down this week amid public opposition to austerity measures.

U.S. stocks opened lower on Wednesday, as the release of strong U.S. employment data added to expectations for the Federal Reserve to scale back its stimulus program before the year end.

During early U.S. trade, the Dow Jones Industrial Average fell 0.13%, the S&P 500 index slid 0.32%, while the Nasdaq Composite index edged down 0.08%.

Payroll processor ADP said the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.

Separately, the U.S. Department of Labor said of people who filed for unemployment assistance last week fell by 5,000 to a seasonally adjusted 343,000, compared to expectations for a drop of 3,000 to 345,000.

Investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

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