US stocks finish at records on strong jobs data

January 5, 2018

By IFCMarkets

Dow closes above 25000

US stock indices ended at record highs on Thursday with solid jobs data underpinning upbeat market sentiment. The dollar weakened: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% to 91.848. Dow Jones industrial average rose 0.6% to record close 25075.13. TheS&P 500 gained 0.4% to 2723.99 led by financial shares up 0.9%. The Nasdaq composite rose 0.2% to 7077.91.

Nine out of the 11 primary S&P 500 sectors finished higher on stronger than expected private sector hiring: employers added 250,000 jobs in December, more than the 190,000 jobs addition forecast, according to payroll processor ADP. The stock market rally, driven by tax cut stimulus expectations last year, continues as dollar weakness buoys US companies earnings prospects in overseas markets.

Carmaker shares lead European indices advance

European stocks extended gains on Thursday led by carmaker shares. The euro and British Pound advances against the dollar resumed. The Stoxx Europe 600 index rose 0.9% supported by positive services sector data for euro-zone. Germany’s DAX 30 rose 1.5% to 13167.89. France’s CAC 40 jumped 1.6% and UK’s FTSE 100 gained 0.3% to all-time closing high 7695.88. Indices opened mixed today.

Markit reported the final reading on the euro-zone’s services purchasing managers index came in better than expected at 56.6, up from November reading of 56.2. The services PMI climbed to 54.2 in December in the UK, from 53.8 the previous month. Auto maker shares rose on better than expected US car sales data.

Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter

Asian indices join global rally

Asian stock indices are higher tracking Wall Street moves overnight. Nikkei rose 0.9% to 23720.00 on continued yen weakness against the dollar. Chinese stocks are rising: the Shanghai Composite Index is 0.2% higher and Hong Kong’sHang Seng Index is up 0.1%. Australia’s All Ordinaries Index is 0.7% higher as Australian dollar fell against the greenback on a surprise November trade deficit.


Market Analysis provided by IFCMarkets

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.