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The Trader: European stocks rally as US breaks for Labor Day holiday

Shares in London have started the week brightly
The Trader: European stocks rally as US breaks for Labor Day holiday

 

  • European shares are higher despite a weak US jobs report on Friday
  • Concerns growing that economic recovery is stalling
  • Oil weakens

European stock markets edged higher this morning towards the top of recent ranges at the start of what’s set to be a fairly quiet day as US markets are shut for the Labor Day holiday. Meanwhile this week’s European Central Bank meeting looms in the near distance. Investors are still digesting the huge jobs report miss last Friday and what it means for the Federal Reserve’s plans to scale back its bond purchases. Stocks just about fell and the dollar was weaker in the wake of the report, whilst gold rallied. It was far from a straight line down for stocks though as large cap growth and tech helped the Nasdaq Composite to rally 0.21 per cent whilst the Dow Jones fell by the same amount. 

This morning the main indices are heading higher by around half of one percent. The euro is lower against the dollar as the latter catches some bid in early trade. Data from Germany has been mixed, with factory orders +3.4 per cent vs -0.7 per cent expected, while the construction PMI slipped deeper into contraction territory at 44.6, a three-month low.

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