Stock markets worldwide experienced a rise on Friday as diminishing US job growth sparked hopes for interest-rate cuts, with London reaching a new record high amidst speculation of a bidding war for mining giant Anglo American.
Investors were eagerly awaiting the release of US non-farm payrolls (NFP) figures, which are crucial to the Federal Reserve’s decision-making on when to lower interest rates. The US Department of Labor reported that hiring in the US stood at 175,000 last month, down from a revised March figure of 315,000, while wages increased by 0.2 percent.
Analysts had predicted the US economy to add 238,000 jobs last month, with wage increases of 0.3 percent. The unexpected decrease in job growth raised concerns about the future of interest rates in the US.
Market reactions were positive, with all three major US indices gaining over one percent. In Europe, London’s FTSE 100 index hit a record high, fueled by speculation of a potential takeover bid for Anglo American by Glencore. The news sent Anglo American shares soaring, while Glencore’s stock took a hit.
In Asia, tech giants in Hong Kong saw gains following strong results and a substantial stock buyback from Apple. The yen also strengthened against the dollar on renewed hopes for US interest rate cuts.
Overall, the global market outlook remained optimistic with key figures showing upward trends across various stock exchanges.
