Global markets endured another selloff on Friday night, largely fuelled by weaker than expected US employment numbers. In London the FTSE slumped 94 points (-1.5%) to settle at 6250, whilst the German DAX tumbled 159 points (-2%) to close at 7659.
The losses saw European stocks post their biggest weekly decline since November as reports signaled that the economic rebound in the U.S. has slowed, while the European Central Bank said risks remain to the euro area’s recovery.
U.S. stocks capped the biggest weekly decline of the year for the Standard & Poor’s 500 Index, after data showed the nation added less than half the number of jobs economists forecast in March.
Payrolls grew by 88,000 workers last month, the smallest in nine months, after a revised 268,000 gain in February that was higher than first estimated
The median forecast of 87 economists surveyed by Bloomberg projected an advance of 190,000. The jobless rate fell to 7.6% from 7.7%.
Crude capped the biggest weekly drop in six months as U.S. employers hired less than half the number of workers forecast in March, raising concern that economic growth won’t be strong enough to support oil demand. Oil for May delivery dropped 56 cents (-0.6%) to $92.70 a barrel on the NYMEX, the lowest settlement since 21 March.
The yen dropped to the lowest since June 2009 after the Bank of Japan outstripped forecasts and announced unprecedented measures last week to fight deflation, spurring concern the currency will be debased.
Today’s session will bring us data in the form of the AIG construction index, at 10:30am, AEST, and ANZ job advertisements, at 12:30pm, AEST.