Stocks, dollar slide after weak US jobs report

AP News
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Posted: Jun 03, 2016 8:50 AM
Stocks, dollar slide after weak US jobs report

LONDON (AP) — Stocks and the dollar turned lower on Friday after the U.S. jobs report showed hiring slowed sharply in May, a sign of economic weakness that could dissuade the Federal Reserve from raising interest rates this month.

KEEPING SCORE: France's CAC 40 lost its gains to trade flat at 4,466, while Germany's DAX fell 0.3 percent to 10,176. Britain's FTSE 100 was up 0.6 percent to 6,222. U.S. futures turned lower, with the Dow and S&P 500 futures both down 0.3 percent.

The dollar was among the biggest movers, falling to 107.69 yen from 108.87 before the report. The euro jumped to $1.1275 from $1.1142.

US ECONOMY: Investors were digesting the news that the U.S. economy added only 38,000 jobs in May, the lowest amount in five years. The unemployment rate fell to 4.7 percent from 5 percent percent, but mainly because about half a million unemployed people stopped looking for work. The report is likely to push the Federal Reserve to hold off raising its key interest rate this month.

ASIA'S DAY: Japan's benchmark Nikkei 225 added 0.5 percent to 16,642.23. South Korea's Kospi inched up 0.04 percent to 1,985.84. Hong Kong's Hang Seng added 0.4 percent to 20,947.24, while the Shanghai Composite gained 0.5 percent to 2,938.68. The S&P/ASX 200 of Australia jumped 0.8 percent to 5,318.90.

ENERGY: Benchmark U.S. crude oil was down 14 cents to $49.03 a barrel in electronic trading on the New York Mercantile Exchange. It rose 16 cents on Thursday, as traders digested OPEC's failure to agree on a production target or limit. Brent crude, which is used to price international oils, was flat at $50.06 a barrel in London.