China Shares Fall After Two-Day Rally as US Jobs Report Beats Forecasts

what happened

According to TradingView, citing dpa-AFX and RTTNews, the Shanghai Composite fell 1.10 percent on Friday to close at 3,649.18, snapping a two-day gain. The Shenzhen Composite dropped 2.25 percent to 2,134.88. Losses were concentrated in technology, manufacturing, mining and industrial stocks, while communications, finance and utilities rose.

In the US, the Nasdaq added 1.09 percent and the S&P 500 gained 0.31 percent, while the Dow Jones slipped 0.46 percent. The Philadelphia Semiconductor Index jumped 4.2 percent. For the week, the Nasdaq lost 3.4 percent. A Labor Department report showed October employment rising far more than expected, strengthening the case for a Federal Reserve rate hike at its December meeting. WTI crude gained 0.51 percent to $90.98 a barrel amid continued concern about renewed US attacks on Iran.

why it matters

A strong US labor market raises the odds of tighter Federal Reserve policy, which typically weighs on growth and technology stocks. China releases October inflation data on Monday, with consumer prices expected to rise 0.8 percent year on year, versus 0.9 percent in September, and producer prices seen up 5.4 percent, versus 5.0 percent.

market impact

China and US stocks: pressure from expectations of Fed tightening; oil: support from Iran conflict risks

• ▲WTI crude pressure up — renewed strike risk against Iran supports prices

tags

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