European, US Stock Markets Kick Off Key Week On Back Foot

European, US stock markets kick off key week on back foot

Most European and US stock markets eased on Monday at the start of a key week for China-US trade hopes and ahead of Britain's general election

London, (UrduPoint / Pakistan Point News - 9th Dec, 2019 ) :Most European and US stock markets eased on Monday at the start of a key week for China-US trade hopes and ahead of Britain's general election.

The Dollar dropped against its main rivals after a rally on Wall Street Friday fuelled by a forecast-busting US jobs report.

Meanwhile, sterling wavered awaiting Thursday's UK election that is expected to see Prime Minister Boris Johnson's Conservatives win a big enough majority to push through his Brexit deal.

In the commodities markets, oil prices retreated on profit-taking after Friday's healthy gains in reaction to OPEC and non-cartel producers led by Russia agreed to cut output by a further 500,000 barrels a day.

Adding to the pre-weekend buying was a decision by kingpin Saudi Arabia and other key countries to make additional reductions.

On the corporate front Monday, shares in UK supermarket giant Tesco shot up 4.7 percent to 243.10 pence after Britain's biggest retailer said it was looking at exiting its Thai and Malaysian businesses.

Sanofi shed 0.7 percent to 82.94 Euros after the French pharmaceutical giant said it had agreed to buy US biotech firm Synthorx, boosting its immuno-oncology portfolio.

"It is a potentially huge week for the markets -- not only because of the UK election, but due to the looming trade deadline this Sunday," said Connor Campbell, analyst at Spreadex trading group.

"Not that you'd necessarily know that following Monday's open.

The markets were relatively timid at the start of the session, which is forgivable considering what is at stake." While observers widely expect Beijing and Washington to hammer out a partial tariffs agreement, trading floors remained nervous places with less than a week until a deadline when the US is due to impose fresh levies on Chinese goods.

Hopes that the US and global economy could be showing signs of picking up were given a boost Friday when the Labor Department said the US economy created 266,000 net new jobs in November, while it upgraded readings for the previous two months.

The figure was well up from the 190,000 expected, while the report also showed unemployment at a 50-year low and wages growth improving.

The data "could support the notion (of) a near-term rebound in the US and the global economy", said AxiTrader's Stephen Innes.

"Even if you don't believe that narrative while thinking we are merely in the calm between two storms, it's challenging to critique this... report in any other light than to describe it as excellent, if not a total blockbuster."Chinese trade data over the weekend failed to provide any excitement, with exports falling more than expected as the tariffs spat with the US grinds on, although imports beat forecasts.

Eyes are on also the Federal Reserve's next policy meeting, which ends on Wednesday, with analysts expecting it to hold off cutting interest rates for a fourth time this year.