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Broadgate: Market News 10/4

10 April 2012

The Dow and the S&P 500 extended losses to a fourth day on Monday, as investors took their cues from last week’s disappointing jobs report, which raised fresh concerns about the U.S. economy’s recovery.

Despite Monday’s declines, the Dow industrials and the S&P 500 ended above their session lows. But trading has been choppy in recent weeks, with a series of gains interrupted by a few days of losses.

The latest jobs figures added to a series of weaker-than-expected indicators, which have taken the edge off a strong multi-month rally.

European stocks tumbled to a two- month low after a report showed U.S. employers added fewer jobs in March than forecast. Asian shares also retreated, while U.S. index futures gained.

The jobs report “puts a sting in the tail following robust U.S. economic data,” said Nam Truong, a trader at Capital Spreads in London. “Most people expect some pullback after a strong rally in the first quarter of this year.”

The euro clung to $1.3111, having bounced from a four-week low of $1.30330 hit on Monday but stopped short of resistance around $1.3130

Earlier on Tuesday, a keenly awaited speech by Federal Reserve Chairman Bern Bernanke proved to be a non-event as he refrained from discussing monetary policy.

Markets, however, will be looking at a raft of other Fed speeches this week for any hint of more easing, which would likely see the U.S. dollar fall to the benefit of risk currencies.

Japanese shares fell, with the Nikkei 225 Stock Average extending its losing streak to the longest since 2009, after the Bank of Japan refrained from additional stimulus today and the yen rose against the dollar, dimming the earnings outlook for the nation’s exporters.

Sony Corp., the money-losing electronics maker which yesterday said it will cut 10,000 jobs, extended declines as the yen strengthened after the BOJ’s announcement.






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