Global stocks mixed after strong US jobs data

Global stocks mixed after strong US jobs data

LONDON: Stock markets were mixed Friday after strong US jobs data raised concerns that the US Federal Reserve may continue to aggressively hike interest rates to tame inflation. US government data showed that the world’s biggest economy added 263,000 jobs in November, with the unemployment rate remaining at 3.7 percent.

Government figures also indicated a bigger jump in hourly wages than analysts had benchmarked. Indices in New York initially tumbled on the release as markets feared it would extend the period of ultra-aggressive Federal Reserve interest rate hikes to counter inflation. But markets recovered throughout the day, with the S&P 500 ending down 0.1 percent.

Investors were unnerved by the jump in wages “because that tends to feed inflation,” said Quincy Krosby of LPL Financial. But traders also realize that “there’s a positive side to this,” she said. “The Fed has the luxury if you will to continue to raise rates, with smaller rate hikes. And the labor market remains resilient.” The jobs data comes two days after Federal Reserve Chair Jerome Powell signaled the central bank could moderate its aggressive posture on interest rates as soon as this month.

Earlier, London finished flat, while Frankfurt gained modestly and Paris dipped. Investors were also focused