Written by Gary
Opening Market Commentary For 12-04-2013
Gary is off today, and the opening market commentary comes from our syndication partner Investing.com/
U.S. stocks opened lower on Wednesday, as upbeat U.S. employment data strengthened expectations that the Federal Reserve will begin tapering its stimulus program in the coming months.
During early U.S. trade, the Dow Jones Industrial Average slipped 0.29%, the S&P 500 index shed 0.35%, while the Nasdaq Composite index fell 0.26%.
Data showed that U.S. non-farm private employment rose at the strongest pace in nine months in November, fuelling optimism over the U.S. labor market.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 215,000 last month, blowing past expectations for an increase of 173,000. The previous month’s figure was revised up to a gain of 184,000 from a previously reported increase of 130,000.
A separate report showed that the U.S. trade deficit narrowed to a seasonally adjusted USD40.6 billion in October, from a deficit of USD43.0 billion in September, whose figure was revised from a previously reported deficit of USD41.8 billion.
European stocks turned broadly lower on Wednesday, despite positive euro zone service sector data, as concerns the Federal Reserve will soon begin tapering its monthly asset purchases weighed.
During European afternoon trade, the EURO STOXX 50 slipped 0.27%, France’s CAC 40 edged down 0.12%, while Germany’s DAX 30 inched 0.02% lower.
Markit research group said that the euro zone's final services purchasing managers' index inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
Germany's services PMI rose to 55.7 in November, up from a preliminary reading of 54.5 and compared to 52.9 in October.
A separate report showed that retail sales in the euro zone fell 0.2% in October, confounding expectations for a 0.3% rise, after a 0.6% decline the previous month.
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Written by Gary