Stocks, euro slide after tepid US jobs report
The IBEX 35 reflects sentiment at the Madrid stock exchange, as Spanish borrowing costs are pushed back up to unsustainable levels. — Reuters picLONDON, July 6 — US stock futures tumbled, government bond prices climbed and the euro fell to a five-week low today after data showed US employers hired workers at a tepid pace last month.
The euro slid to US$1.2362, down from the US$1.2377 it traded at before the jobs report, marking a drop of 0.3 per cent from the previous close.
US stock index futures extended their decline while Treasuries prices rose and benchmark 10-year note yields fell to their lowest levels in four days at 1.57 per cent.
The Labour Department said non-farm payrolls expanded by just 80,000 jobs in June, falling short of forecasts and little better than a revised May reading of 77,000.
Earlier, policy loosening by three major central banks had failed to impress investors, pushing Spanish borrowing costs back up to unsustainable levels reached before last week’s EU summit took measures designed to ease pressure on them.
Safe-haven German Bund futures hit a session high and European shares fell further after the data, down 0.6 per cent on the day, having been 0.2 per cent lower beforehand. — Reuters
