Chinese Trade Fears Spill Into Weekend

Friday, 2 November: Markets looked to end the week on a positive note after a bumper session in Asia which saw the Hang Seng close over 4% higher and the Nikkei achieve 2.5% gains to close the week. London shares remained higher for most of the session until tailing off later in the afternoon once the US opening bells rang. As we write US markets look likely to end the week on a downbeat note after a resurgent week, the NASDAQ currently down 1.3% alongside the Dow’s slide of 1%.

Paddy Power Betfair shares climbed 1.8% after raising underlying guidance. Third quarter EBITDA fell 16% on the inclusion of a loss from its US acquisition of FanDuel. Sage shares also performed well today after the appointment of Steve Hare as the new CEO. He has moved from CFO and this suggests there wont be any radical changes to strategy. Shares closed up 2.65%.

The main event for the majority of investors today was US payroll data, which was released this afternoon. Wage growth was shown to be at a 9 year high, growing at an annual rate of 3.1% during October, from a growth rate of 2.8% during September. The economy added 250,000 jobs which beat expectations as the jobless rate remained at 3.7%. The primary cause of the dip in US shares stemmed from fears surrounding Chinese trade, which will likely impact the open next week across Asian and European bourses. The news also put a reverse in sterling’s recent trajectory with the dollar strengthening.

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