Global stock markets sink ahead of US jobs report

Source: AP

By YOUKYUNG LEE

SEOUL, South Korea (AP) — Global stock markets were lower Friday with Tokyo's index down 2 percent as jitters mounted before the release of the monthly U.S. jobs report and the resumption next week of trading on Chinese stock markets.

KEEPING SCORE: European stocks opened sharply lower. Britain's FTSE 100 dropped 1.7 percent to 6,097.27 and France's CAC 40 sank 1.7 percent to 4,573.23. Germany's DAX fell 1.7 percent to 10,137.53. Futures pointed to a downbeat day for Wall Street. S&P 500 futures dropped 0.9 percent and Dow futures shed 1 percent.

US JOBS: The U.S. government issues the August jobs report on Friday, which could play a big role in whether the Federal Reserve decides to raise interest rates at its Sept. 16-17 meeting. Analysts are forecasting that employers produced a healthy increase of 220,000 jobs and that the unemployment rate fell to 5.2 percent. Record low interest rates since the 2008 financial crisis have been a boon for stock markets so investors await the jobs data and the Fed meeting with trepidation. In recent weeks, market expectations of a September rate hike have dimmed because of signs of weakness in the global economy.

ANALYST'S TAKE: The upcoming jobs report "may dictate some trader caution today," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "The major risk appears to be if the outcome is a strong jobs number," he said in a market commentary. "Given that the Fed is comfortable with the broad trend of job growth, a strong number would improve the atmosphere for a September rate hike."

FULL story at link.

Read more: http://bigstory.ap.org/article/aa826e2b46364de3bb5415ba6cadf20e/tokyo-leads-asia-stock-markets-lower-ahead-us-jobs-report