In the United States, US stocks started the week lower, following a global equity decline on renewed concerns about tech valuations and fiscal sustainability. Sentiment weakened further after a federal appeals court ruled most Trump-era tariffs illegal, though they remain in place until October 14th pending a Supreme Court appeal. On the corporate front, Broadcom shares gained 0.7% in pre-market trading ahead of its quarterly earnings, while Tesla advanced nearly 1% after launching its robotaxi app to the public. The S&P 500 and the Nasdaq closed higher on Wednesday, boosted by Google-parent Alphabet hitting a record high after a Washington judge ruled the company would not have to sell its Chrome browser. The S&P 500 added 0.2% and the Nasdaq gained 0.4% on Thursday as traders digested the latest labour data. The US private sector added only 54K jobs in August, reinforcing signs that the labour market is losing momentum and strengthening expectations of a Federal Reserve rate cut this month. Initial jobless claims also rose to 237K, the highest in nearly two months. US stocks closed lower on Friday after weaker-than-expected August jobs data raised concerns about a slowing economy, even as expectations for Federal Reserve rate cuts firmed. The economy added only 22,000 jobs, significantly below the forecast of 75,000, while the unemployment rate rose to 4.3%, underscoring signs of a cooling labour market. Traders have increased the probability of interest rate cuts, with expectations rising for a potential 50 basis point reduction this month. For the week the S&P 500 finished down -0.12% while the NASDAQ finished in slightly positive territory +0.51%.
In Europe, European equities started September on a positive note, before weakening on inflation concerns. On the corporate front, Novo Nordisk shares gained 2.9% after the company reported that its weight-loss drug Wegovy reduces the risk of heart attack. Stocks in Europe extended losses on Tuesday, with the EuroStoxx50 down 0.5% and the EuroStoxx600 sliding 0.6% toward one-month lows, as investors digested the latest inflation data. The European Commission formally advanced its long-awaited trade pact with Mercosur—Brazil, Argentina, Paraguay, and Uruguay—on Wednesday, initiating a ratification process by the EU’s 27 member states and Parliament. If approved, it would become the EU’s largest free-trade agreement, covering tariffs, intellectual property, and more. The commission estimates it will increase EU annual exports to the four-country bloc by up to 39%, or €49 billion, and give Europe an edge over China and others vying for influence in the region. European stocks traded higher on Wednesday, with the EuroStoxx50 up 0.7% and the EuroStoxx600 gaining 0.4%, rebounding after a 1.4% drop in the previous session. Large-cap stocks mostly advanced, led by SAP (+1.6%), LVMH (+1.5%), ASML Holding (+2.1%), Hermès International (+0.5%) and Novartis (+0.5%). European shares closed higher on Thursday as heightened expectations for a U.S. Federal Reserve interest rate cut lifted markets, while easing pressure on the bond market also supported the main index. European stocks closed lower on Friday, mirroring the decline in US equities after disappointing labour market data from the United States raised concerns about the outlook for the world’s largest economy For the week the EuroStoxx50 and EuroStoxx600 indices closed down -0.94% and -0.50%, respectively.
In the UK, the FTSE100 opened September higher, supported by corporate updates and anticipation of US jobs data. After Tuesday saw its sharpest daily decline since April, the index rebounded midweek despite rising gilt yields. The FTSE100 edged into negative territory on Friday, closing at 9,208 and ending a three-session winning streak, in line with broader declines across European and US markets. For the week the FTSE100 closed flat down -0.02%.
