D.he American stock exchanges rose to fresh highs at the end of the week. A weakening job creation in the world’s largest economy fueled speculation that the economy should be supported with further billions in aid during the pandemic. The Dow Jones index of standard values climbed 0.8 percent to a record high of 30,218 points. The broader S&P 500 rose 0.9 percent to 3699 points and the index of the technology exchange Nasdaq rose 0.7 percent to 12,464 points and also recorded all-time highs. Important stock exchanges in Europe also closed in positive territory.
In November, companies outside of agriculture only created 245,000 jobs on the American labor market. Economists surveyed by Reuters news agency had expected 469,000. The unemployment rate, determined in a separate survey, fell to 6.7 percent in November from 6.9 percent in October.
Hope for economic aid
Analysts believe it is possible that Democrats and Republicans in Congress could still agree on an economic stimulus package worth a good $ 900 billion. “The bad news of the weakening employment situation is potentially good news for investors because it means that the stimulus package is much more likely to happen in a fairly short time frame,” said Ryan Detrick, senior market strategist at asset manager LPL Financial.
The job data dealt a temporary blow to the dollar. After diving towards the two-and-a-half year low, the motto caught on again. According to traders, euro investors played it safe after the price rally in recent weeks and took profits. The common currency fell to $ 1.2130. At noon it was $ 1.2177, its highest level in nearly three years. “Apparently, some investors are getting cold feet before the ECB meeting next week,” says Commerzbank analyst Antje Praefcke. They feared that the monetary authorities would take a clear position on the rapid appreciation of the euro.
On the raw materials market, the decision by the OPEC states and their allies made it easier to ramp up oil production from January onwards. The price of a barrel of Brent North Sea oil rose by 2.5 percent. Then the plus melted at a rate of 49.20 dollars per barrel to around one percent. The big oil exporters agreed to loosen their production brake and announced that they would review their production policy at regular intervals. In view of the rising oil prices, investors were also in demand for the papers of large oil companies. Chevron shares rose 3.9 percent and Occidental Petroleum stocks rose 13 percent.
Financial stocks were also in demand on the stock market after the sector had underperformed the market as a whole since the beginning of the year.