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US and European stocks slumped Thursday as investors weighed another wave of corporate results, economic data and the likelihood of another interest rate cut.After rising throughout the summer and early part of the fall, US stocks have been choppy in recent weeks as a government shutdown depletes investors of key updates on the economy.”We are in a sense running out of catalysts right now to either support or propel stock prices,” said Sam Stovall of CFRA Research. “The market decided to take whatever profits it can and await additional news that could become encouraging once again.”Investors and policymakers alike have been left in a fog as the government has delayed the release of key data on employment, trade, retail sales and others.”Financial markets find themselves groping around in the dark,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.Chicago Federal Reserve President Austan Goolsbee, who has been supportive of lowering interest rates, told CNBC in an interview that making cuts amidst a lack of data on inflation made him “uneasy.”With key economic data produced by the US government unavailable due to the shutdown, investors have been turning to private data sources.A report by outplacement firm Challenger, Gray & Christmas said the number of layoff announcements in October hit the highest level in 22 years.The report “painted a grim picture of the jobs market,” said Joe Mazzola, head trading and derivatives strategist at Charles Schwab brokerage.The report found that this year has been the worst for layoffs since 2020, when the labor market was decimated by the pandemic, and that hiring has slowed to a 14-year low.However the report “bolstered the case for a Federal Reserve rate cut in December despite Chairman Jerome Powell’s unexpectedly hawkish tone following the Fed meeting last month,” Mazzola added.Investors were also digesting news that a majority of the US Supreme Court was skeptical about the legality behind a swath of Trump’s sweeping tariffs, which also lent support to equities.”Is it good news? Paradoxically, not really,” said Swissquote Bank senior analyst Ipek Ozkardeskaya, who noted that the litigation means heightened uncertainty on international trade dynamics and how much tariff revenue will be available to the US Treasury.Investors were also reacting to the Bank of England’s decision, in a tight vote, to keep its key interest rate unchanged before the UK’s Labor government presents its budget this month.Weighing on European sentiment were some poorly received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Franco-Dutch group Air France-KLM plunged more than 14 percent after it reported a drop in third-quarter net profit.In New York, shares in chip-maker Qualcomm fell 3.6 percent despite a positive earnings report. Tesla shares dropped 3.5 percent ahead of a vote by shareholders on a pay package for Elon Musk that could reach as much as $1 trillion.- Key figures at around 2120 GMT -New York – Dow: DOWN 0.8 percent at 46,912.30 (close)New York – S&P 500: DOWN 1.1 percent at 6,720.32 (close)New York – Nasdaq Composite: DOWN 1.9 percent at 23,053.99 (close)London – FTSE 100: DOWN 0.4 percent at 9,735.78 (close)Paris – CAC 40: DOWN 1.4 percent at 7,964.77 (close)Frankfurt – DAX: DOWN 1.3 percent at 23,734.02 (close)Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)Euro/dollar: UP at $1.1548 from $1.1492 on WednesdayPound/dollar: UP at $1.3135 from $1.3050Dollar/yen: DOWN at 153.04 yen from 154.12 yenEuro/pound: DOWN at 87.91 pence from 88.06 penceBrent North Sea Crude: DOWN 0.2 percent at $63.38 per barrelWest Texas Intermediate: DOWN 0.3 percent at $59.43 per barrelburs-jmb/des

France has urged the European Union to take measures against Asian e-commerce giant Shein, two ministers said Thursday, following an uproar over sales of childlike sex dolls on its French website.The European Commission, which is already investigating Shein for multiple suspected breaches of EU rules, responded that it takes “very seriously” the risks from illegal products on the online platform but did not plan to block access for now.The Chinese-born giant opened its first brick-and-mortar store in Paris on Wednesday with activists up in arms over the dolls and the environmental footprint of the fast fashion brand.While the shop at the BHV department store remains open, the French government has moved to suspend online sales while it verifies the e-platform is complying with French laws, and ordered customs officials to inspect around 200,000 Shein packages.”The European Commission must take action,” Foreign Minister Jean-Noel Barrot told broadcaster France Info.”The commission has conducted certain investigations. It must now accompany them with sanctions,” he said.French junior minister for digital platforms Anne Le Henanff said she and Finance Minister Roland Lescure had sent a letter to the European Commission urging the EU’s executive arm “to use all its powers to shed light on Shein’s actions”.”Platforms that benefit from the European market must adhere to its principles,” she wrote on LinkedIn. “The era of impunity is over.”EU digital spokesperson Thomas Regnier told reporters: “The sale of childlike sex dolls is extremely concerning.””We do not want to see these products being offered to European citizens,” he added.Regnier said there was currently no plan to block access to Shein, and that under the bloc’s Digital Services Act such a step would be a “very last resort” to be taken by the member state hosting the platform — in this case, Ireland, home to Shein’s EU headquarters.Shein’s chief executive Donald Tang made assurances of the company’s “steadfast commitment to comply with all French laws” in a letter sent Wednesday to France’s commerce minister, asking for a meeting to present immediate steps it would take. France ramped up its crackdown on Thursday, with all Shein parcels arriving at Paris-Charles de Gaulle Airport — the key entry point for packages from China — to be inspected by customs officials to bolster investigations into the company. Officials had already found illegal and non-compliant products, including “unauthorised cosmetics, toys dangerous for children, counterfeit goods (and) defective household appliances”, Budget Minister Amelie de Montchalin said on X, after visiting the airport.- ‘Didn’t stop me from coming’ -The EU added Shein in April 2024 to its list of Very Large Online Platforms subject to tougher obligations under the DSA, a powerful law that forces tech giants to do more to protect European consumers online.It has been looking since February this year into risks linked to illegal products on the site, a possible first step towards a formal investigation under the DSA.In parallel, Brussels has launched a probe along with consumer authorities in several EU countries into practices by Shein that infringe on the bloc’s consumer laws, from fake discount deals to misleading product information.Shein risks fines unless it tackles the concerns, which it has said it is working to do.Shein said it was banning all sex dolls on its French website after a fraud watchdog alerted authorities over its sale of sex dolls resembling children.French newspaper Le Parisien posted a picture of a childlike doll measuring around 80 centimetres (30 inches) in height and holding a teddy bear that it said was sold on the website.It cited a product description that made clear it was being sold for sexual purposes.The scandal did not deter hundreds of shoppers from flocking to the upper-end BHV department store in central Paris on Wednesday.”The dolls didn’t stop me from coming,” said Fatima Mriouch, a 48-year-old education worker.Outside, activists distributed a flyer denouncing “suspected forced labour” and “pollution”, and urging passersby to sign a petition against Shein’s presence in the Paris store.Frederic Merlin, director of the SGM company that operates BHV, has said he hopes Shein will help increase footfall at the department store. Nearly 8,000 people visited BHV for the opening on Wednesday, according to store figures. Five other Shein stores are set to open soon in France.burs-ah/sw/phz

US and European stocks sputtered Thursday as investors weighed another wave of corporate results, interest rates, the US government shutdown and a Supreme Court hearing on President Donald Trump’s tariffs.Wall Street’s tech-heavy Nasdaq and broad-based S&P 500 opened lower, retreating from gains in the previous day after fears of an AI bubble shook the markets earlier this week.Asian markets closed higher but Europe’s main indexes were down in afternoon deals.”The week began with doubts cast over the future returns on investments made in Artificial General Intelligence (AGI),” said David Morrison, analyst at Trade Nation.”Not only are the sums involved quite mind-boggling, but there are also concerns over the circularity of much of the investment,” he said.The more than month-long US government shutdown was also in focus, as US officials said they were cutting 10 percent of flight capacity in 40 busy airports. Analyst said jobs data on Wednesday had helped to improve the mood on trading floors.Jobs growth in the US private sector soared past analysts’ expectations in October, payroll firm ADP said, providing one of the few economic indicators in recent weeks as official data has been delayed due to the US government shutdown.Investors were also digesting news that a majority of the US Supreme Court was sceptical about the legality behind a swath of Trump’s sweeping tariffs, which also lent support to equities.”Is it good news? Paradoxically, not really,” said Swissquote Bank senior analyst Ipek Ozkardeskaya.”It brings uncertainty, renewed volatility, potentially more than $100 billion in refunds the US government may owe to other countries according to Bloomberg, and a deeper fiscal deficit,” she said.Investors were also reacting to the Bank of England’s decision, in a tight vote, to keep its key interest rate unchanged before the UK’s Labour government presents its budget this month.Four of the nine governors had voted to lower borrowing costs.A cut would likely have eased pressure on Prime Minister Keir Starmer’s Labour government after finance minister Rachel Reeves on Tuesday paved the way for controversial tax hikes in her November 26 budget.Weighing on European sentiment were some poorly received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Hikma Pharmaceuticals slumped 11 percent on London’s top-tier FTSE 100 index after the company lowered its profit forecast.Franco-Dutch group Air France-KLM plunged more than 13 percent after it reported a drop in third-quarter net profit.In New York, shares in chip-maker Qualcomm fell despite a positive earnings report. Tesla shareholders, meanwhile, were due to decide on a pay package for Elon Musk that could reach as much as $1 trillion.And the European Union on Thursday announced a formal antitrust probe against stock exchange operators Nasdaq and Deutsche Boerse over “possible collusion” involving financial derivatives.- Key figures at around 1330 GMT -New York – Dow: FLAT at 47,325.11 pointsNew York – S&P 500: DOWN 0.1 percent at 6,789.83New York – Nasdaq Composite: DOWN 0.3 percent at 23,431.85London – FTSE 100: DOWN 0.2 percent at 9,762.53Paris – CAC 40: DOWN 0.8 percent at 8,010.21Frankfurt – DAX: DOWN 0.3 percent at 23.968.14Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)Euro/dollar: UP at $1.1528 from $1.1488 on WednesdayPound/dollar: UP at $1.3091 from $1.3048Dollar/yen: DOWN at 153.57 yen from 154.13 yenEuro/pound: DOWN at 88.04 pence from 88.40 penceBrent North Sea Crude: DOWN 0.6 percent at $63.17 per barrelWest Texas Intermediate: DOWN 0.6 percent at $59.25 per barrelburs-bcp-lth/jj

Plying everything from handbags to salt in a cavernous Shanghai exhibition hall, US exporters hit by the trade war with China said Thursday they hope improving bilateral relations will bring much-needed stability.After spending much of this year in a tit-for-tat tariff escalation, the United States and China have agreed to walk back from some punitive measures after a meeting last week between leaders Donald Trump and Xi Jinping.At the annual China International Import Expo (CIIE), US ginseng seller Ming Tao Jiang told AFP multiple rounds of duties imposed since Trump’s first presidential term had “decimated” growers in central Wisconsin state.”Before 2018 we had 200 registered growers in Wisconsin, in Marathon County… after the first and second round of tariff wars, adding insult to injury of Covid, we’re down to 70,” said Jiang, founder of the Marathon Ginseng company.”With the recent agreement between the two governments, I think things are stabilised, we’re looking for a better potential in the future,” Jiang added.The North American variety of the aromatic root ginseng, believed to have medicinal properties in traditional Asian cultures, was one of the first products shipped by the United States to China in the 1780s.US and Chinese authorities have sporadically slapped retaliatory tariffs on each other’s ginseng products since 2018, with Jiang saying his goods currently face a 45 percent import duty in China.”We’re here trying to keep our tradition going for the local economy,” he told AFP.- ‘Hurting everybody’ -Other US exhibitors echoed Jiang’s cautious optimism, as visitors sampled Chinese-style baijiu liquor made from American rice and browsed stalls advertising cornbread mixes and California almonds.Tara Qu is a trade representative in China for Idaho state who on Thursday oversaw the ceremonial signing of a purchase agreement between a Chinese maker of salted duck eggs and dynamite.”I think the tariff decrease can help a little bit,” Qu told AFP, referring to the recent agreement by China and the United States to suspend additional tariffs on each other’s goods.But as Beijing continues to levy a 10 percent blanket tariff on US imports, “we hope there will be a further reduction, so that trade can go back to normal”, Qu said.Qu added that US companies fear that Chinese buyers spooked by the trade war will turn to alternative suppliers from other countries.She pointed to Anderson Northwest, an Idahoan producer of beans and pulses, as a CIIE exhibitor hit especially hard by tariffs this year.”Since the tariffs increased by 20 percent, they haven’t exported any of their products to China,” Qu said.Eric Zheng, president of the American Chamber of Commerce in Shanghai, told AFP: “We certainly hope that there will be more reductions in tariffs, because tariffs are hurting everybody.” “We have a long way to go to lower tariffs on (chamber) members,” Zheng said, noting that Californian wines, for example, are currently subject to over 100 percent in Chinese import duties. Throughout the trade war, “it was very difficult to plan for the long term,” Zheng said.Zheng welcomes planned visits by Trump and Xi to each other’s countries next year.”With those political events in place, I think we’ll see (a) more stable environment, at least in the next year, if not beyond,” Zheng said. “That’s welcome news for us”.

European stock markets dropped Thursday following gains in Asia and on Wall Street as traders reacted to positive US jobs data and mixed earnings.The Bank of England is expected to keep its key interest rate unchanged in a decision due at 1200 GMT, but some analysts are not ruling out a cut before a UK budget next month that is set to feature tax rises.Asian stock markets closed higher following US gains Wednesday, clawing back some of the hefty losses suffered earlier in the week on AI bubble fears.”A reading implying an improved jobs market in the US proved helpful to sentiment on financial markets,” noted AJ Bell investment director Russ Mould.Jobs growth in the US private sector soared past analysts’ expectations in October, payroll firm ADP said Wednesday, while it was one of the few economic indicators to come out in recent weeks owing to the US government shutdown.Private sector employment jumped by 42,000 in October, rebounding from a loss of 29,000 jobs in September.Mould added signs that a majority of the US Supreme Court was sceptical about the legality behind a swath of President Donald Trump’s sweeping tariffs also lent support to equities.Weighing on European sentiment were some poorly-received company earnings and official data that showed industrial production in Germany rebounded less than expected in September.Shares in Hikma Pharmaceuticals slumped 11 percent on London’s top-tier FTSE 100 index after the company lowered its profit forecast.Legrand, the French maker of electrical products, shed 10 percent after revenue rose less than forecast.Elsewhere, the European Union on Thursday announced a formal antitrust probe against stock exchange operators Nasdaq and Deutsche Boerse over “possible collusion” involving financial derivatives.- Key figures at around 1045 GMT -London – FTSE 100: DOWN 0.3 percent at 9,749.71 pointsParis – CAC 40: DOWN 0.4 percent at 8,042.98Frankfurt – DAX: DOWN 0.1 percent at 24,036.98Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)New York – Dow: UP 0.5 percent at 47,311.00 (close)Euro/dollar: UP at $1.1510 from $1.1488 on WednesdayPound/dollar: UP at $1.3062 from $1.3048Dollar/yen: DOWN at 153.80 yen from 154.13 yenEuro/pound: DOWN at 88.12 pence from 88.40 penceBrent North Sea Crude: UP 0.6 percent at $63.88 per barrelWest Texas Intermediate: UP 0.7 percent at $60.02 per barrelburs-bcp/lth

Asian markets rose on Thursday to claw back some of the previous day’s hefty losses as investors tracked a bounce on Wall Street sparked by jobs data that soothed worries about the US economy.Signs that a majority of the US Supreme Court was sceptical about the legality behind a swath of President Donald Trump’s sweeping tariffs also provided a little support.Trader sentiment crept back after Wednesday’s selloff that came on the back of growing worries that the tech-fuelled AI rally that has characterised markets this year has led to a bubble that could soon pop.The rush for cover — which tracked big losses on Wall Street — hammered some regional giants, including Japanese tech investor SoftBank and South Korean chipmakers Samsung and SK hynix.However, New York investors enjoyed a much happier Wednesday after figures from payrolls firm ADP showed US private sector employment jumped far more than expected last month, having surprisingly fallen the month before.That came as a separate report indicated that activity in the crucial services industry grew far more than estimates suggested.The jobs data release is likely to attract extra attention because it is one of the few economic indicators to come out in recent weeks owing to the US government shutdown.Asia followed suit after Wall Street’s advance, which was also helped by upbeat earnings.Tokyo and Seoul were both well up, although still some way from clawing back all of Wednesday’s losses.Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Manila, Bangkok and Jakarta also rose.London opened on the front foot but Paris and Frankfurt dipped.Still, there is some concern that valuations have run a little too high on the back of the AI frenzy, which has pushed some firms to records — with US chip titan Nvidia topping a $5 trillion valuation.”Valuation concerns have intensified as the (S&P 500) index has climbed higher throughout the year,” said IG market analyst Fabien Yip.”Investors are questioning whether current price levels can be sustained, particularly on stocks boosted by the AI boom if interest rates remain elevated for longer than expected.”Investors were keeping a keen eye on developments in Washington after a majority of Supreme Court justices queried Trump’s ability to impose his tariffs, which have raked in billions of dollars in customs revenue.The nine justices are considering Trump’s use of emergency powers to impose “reciprocal” tariffs on nearly every US trade partner, as well as levies targeting Mexico, Canada and China over their alleged roles in illicit drug flows.Several conservative justices, along with the three liberals, questioned at a hearing on Wednesday whether the International Emergency Economic Powers Act that Trump invoked confers the authority to impose tariffs.”The statute doesn’t use the word tariffs,” said Chief Justice John Roberts, and imposing tariffs is equivalent to taxation, which has always been a “core power of Congress”.The justices sought to clarify whether Congress has to give clear authorisation for policies with significant economic or political consequences.Justice Sonia Sotomayor, a liberal, noted that the power to impose taxes is a “congressional power, not a presidential power”.”You want to say tariffs are not taxes, but that’s exactly what they are,” Sotomayor said.Still, lawyers noted that if the top court finds Trump’s global tariffs illegal, the government can tap other laws to temporarily impose up to 15 percent duties while pursuing pathways for more lasting levies.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 1.3 percent at 50,883.68 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 26,485.90 (close)Shanghai – Composite: UP 1.0 percent at 4,007.76 (close)London – FTSE 100: UP 0.1 percent at 9,784.10 Euro/dollar: UP at $1.1510 from $1.1488 on WednesdayPound/dollar: UP at $1.3062 from $1.3048Dollar/yen: DOWN at 153.80 yen from 154.13 yenEuro/pound: DOWN at 88.12 pence from 88.40 penceWest Texas Intermediate: UP 0.5 percent at $59.87 per barrelBrent North Sea Crude: UP 0.4 percent at $63.77 per barrelNew York – Dow: UP 0.5 percent at 47,311.00 (close)

A French-British investigation into alleged bribery at France-based defence giant Thales is examining a contract with Indonesia, an AFP investigation has showed.In November last year, Britain’s Serious Fraud Office (SFO) said it had launched a joint investigation with its French counterparts into “suspected bribery and corruption” at the multinational, which denies any wrongdoing.A 41-year-old management controller, who worked at the company between August 2018 and June 2023, was the whistleblower who alerted the authorities and caused the probe to be opened, according to two sources following the case who requested not to be named because not allowed to speak to the press.The former member of staff, who wishes to remain anonymous and who AFP reached through his lawyer, said he started asking colleagues questions after he noticed suspicious orders on the margins of big air defence deals with Indonesia and Saudi Arabia.He said that in late 2018 he noticed a curious payment order for a service worth £400,000 ($520,000 at today’s rate) on the sidelines of a deal between Thales UK and Indonesia.He said he grew suspicious when someone asked him for a retroactive approval of the order with incoherent documents produced after it was made, and reported this to his superiors.”The only thing I was told was to keep quiet,” he said.He alleged that months later, he noticed another £100,000 transferred to Saudi Arabia, where a contract had also been signed.He said he alerted colleagues in writing and orally, then via an internal complaint platform in 2022.He believes this is why he was fired.- Multiple probes -Thales told AFP the former employee only filed an internal complaint “several hours after being summoned to a meeting towards a possible dismissal for professional incompetence”.A team of in-house auditors led an internal probe and concluded that there were no grounds to his allegations, it said, adding however that it was cooperating with the British and French authorities.Neither the SFO nor the French financial prosecutor’s office wished to comment on an ongoing investigation.One source following the case said the Indonesian contract was being investigated in the joint probe.But no source confirmed or denied that any Saudi contract was also being examined.A judicial source, also wishing to remain anonymous, said the French investigators were looking at an “arms market” in Asia, without saying which country was involved.The French judiciary is looking into at least five other cases of alleged graft involving the defence firm.An investigating magistrate is investigating the sale of submarines to Malaysia in 2002 and could order a trial against parties including the firm.Four other preliminary probes, launched between 2016 and 2023, are looking at alleged corruption in places including Brazil, India and the United Nations. No charges have been pressed against Thales in those investigations.Thales told AFP the probes were ongoing and that it “strictly follows national and international regulation”.

Wall Street stocks advanced Wednesday after better-than-expected jobs data soothed concerns about the US economy with equity buyers stepping in following the prior session’s retreat.US private sector employment jumped 42,000 in October, ADP said, rebounding from a loss of 29,000 jobs in September, nearly double the amount forecasted by economists surveyed by Dow Jones Newswires and The Wall Street Journal.The ADP figures are likely to attract renewed attention as it is one of the few economic indicators released in recent weeks amid the US government shutdown and will feed into investors’ perceptions of whether the US Federal Reserve will cut interest rates again in December.The Institute of Supply Management’s index of services industry activity — another rare data point — came in at 52.4 for October, better than the 50.9 level projected by analysts, which indicates growth.Major US stocks opened little changed, but picked up momentum as the day progressed. The broad-based S&P 500 finished up 0.4 percent.”It’s remarkable to me that the market has sort of stumbled the last couple of weeks, but every time we get the experts coming out talking about the beginning of a bear market, the buyers come back in the next day and lift it back up again,” said FHN Financial’s Chris Low.Earlier in the day, the Nikkei sank 2.5 percent as the valuation concerns that plagued New York markets on Tuesday persisted into Tokyo’s trading day. Major European indices finished higher.Global stock markets have soared this year as an eye-watering flood of cash piled into companies linked to artificial intelligence, including US tech titans Nvidia, Amazon and Apple as well as Asian firms Samsung and Alibaba.While there have been occasional pullbacks, investors have reliably stepped in to buy any dips in share prices.Besides valuation worries, the market is keeping an eye on the shutdown, which Wednesday became the longest ever, topping the 35-day record set during President Donald Trump’s first term in office. His administration warned of holiday air-travel chaos and threatened Americans’ benefits in a bid to force a resolution.A total 1.4 million federal workers, from air-traffic controllers to park wardens, are on enforced leave or working without pay.Thanksgiving air travel is expected to set a new record this year, the American Automobile Association (AAA) projected — with 5.8 million people set to fly domestically over the November 27 holiday.- Key figures at around 2115 GMT -New York – Dow: UP 0.5 at 47,311.00 (close)New York – S&P 500: UP 0.4 percent at 6,796.29 (close)New York – Nasdaq Composite: UP 0.7 percent at 23,499.80 (close)London – FTSE 100: UP 0.6 percent at 9,777.08 (close)Paris – CAC 40: UP less than 0.1 percent at 8,074.23 (close)Frankfurt – DAX: UP 0.4 percent at 24,049.74Tokyo – Nikkei 225: DOWN 2.5 percent at 50,212.27 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 25,935.41 (close)Shanghai – Composite: UP 0.2 percent at 3,969.25 (close)Euro/dollar: UP at $1.1488 from $1.1482 on TuesdayPound/dollar: UP at $1.3048 from $1.3021Dollar/yen: UP at 154.13 yen from 153.67 yenEuro/pound: DOWN at 88.4 pence from 88.18 penceBrent North Sea Crude: DOWN 1.4 percent at $63.52 per barrelWest Texas Intermediate: DOWN 1.6 percent at $59.62 per barrelburs-jmb/sla

Wall Street stocks pushed higher on Wednesday after better-than-expected jobs data soothed concerns about the US economy.However Asia’s main markets fell sharply, as did Wall Street’s tech-heavy Nasdaq Composite index on Tuesday, on fears of an AI bubble following a rally that has propelled valuations to record highs.US private sector employment jumped 42,000 in October, ADP said, rebounding from a loss of 29,000 jobs in September, nearly double the amount forecasted by economists surveyed by Dow Jones Newswires and The Wall Street Journal.The ADP figures are likely to attract renewed attention as it is one of the few economic indicators released in recent weeks and will feed into investors’ perceptions of whether the US Federal Reserve will cut interest rates again in December.Wall Street’s main indices opened broadly flat, but the S&P 500 and Nasdaq Composite both pushed higher in morning trading.”Once more the wall of buying has come in to take advantage of this latest dip,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.Global stock markets have soared this year as an eye-watering flood of cash piled into companies linked to artificial intelligence, including US tech titans Nvidia, Amazon and Apple as well as Asian firms Samsung and Alibaba.But despite recent strong earnings, traders have questioned the wisdom of chasing ever-higher prices, with cash mostly funnelled into a handful of big-name companies.However this year’s rally to record high prices has seen investors swarming in to buy any dips in share prices.On Wednesday, shares in the so-called Magnificent Seven tech stocks turned in mixed performances. Microsoft shed one percent, with Amazon and Apple hit by smaller dips.However, shares in AI chipmaker Nvidia, Google’s parent company Alphabet, and Facebook-parent Meta all rose more than one percent.”In early trading during the US session the US tech sector does not look like it is on the cusp of bursting,” said Kathleen Brooks, research director at XTB, downplaying concerns about a bubble.While high stock valuations are a concern for some companies, she noted that Amazon, Meta and Nvidia have price to earnings ratios lower than their 10-year averages.Investors look to a company’s share price compared to its earnings per share to gauge a stock’s value, with high price to earnings ratios an indication a stock is overvalued.Sentiment was hit also by the US government shutdown, which Wednesday became the longest ever, topping the 35-day record set during President Donald Trump’s first term in office. His administration warned of holiday air-travel chaos and threatened Americans’ benefits in a bid to force a resolution.A total 1.4 million federal workers, from air-traffic controllers to park wardens, are on enforced leave or working without pay. “As well as valuation fears, the US is grappling with a nation in shutdown,” noted Emma Wall, chief investment strategist at Hargreaves Lansdown.”The US is nearing peak travel period, with Thanksgiving later this month. Listed airlines are likely to see share prices fall should flights be cancelled en masse.”But the US jobs data and a survey showing a return to growth in the services sector in October helped dispel concerns the government shutdown was having a large impact on the economy.- Key figures at around 1630 GMT -New York – Dow: UP 0.1 at 47,135.39 pointsNew York – S&P 500: UP 0.5 percent at 6,804.07New York – Nasdaq Composite: UP 0.8 percent at 23,534.32London – FTSE 100: UP 0.6 percent at 9,777.08 Paris – CAC 40: UP less than 0.1 percent at 8,074.23Frankfurt – DAX: UP 0.4 percent at 24,049.74Tokyo – Nikkei 225: DOWN 2.5 percent at 50,212.27 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 25,935.41 (close)Shanghai – Composite: UP 0.2 percent at 3,969.25 (close)Euro/dollar: DOWN at $1.178 from $1.1479 on TuesdayPound/dollar: UP at $1.3040 from $1.3019Dollar/yen: UP at 154.25 yen from 153.66 yenEuro/pound: DOWN at 88.03 pence from 88.17 penceBrent North Sea Crude: UP 0.1 percent at $64.50 per barrelWest Texas Intermediate: UP 0.1 percent at $60.62 per barrelburs-rl/tw