Global stock markets finished the week on a broadly positive note after another strong payrolls result from the US economy.
New job additions increased 943k, dropping the unemployment rate from 5.9% to 5.4% in the month of July.
The result was a strong rally in the Dow Jones, up 0.4% and S&P 500, up 0.2%, with financials (+1.6%) and materials (+1.4%) the key contributors.
The Nasdaq was comparatively weaker, falling 0.4% but managing a 1.1% gain for the week, with the Dow and S&P 500 both up 0.9% in a positive start to the month.
Even Europe is getting in on the party with the Euro Stoxx hitting an all-time high during the week.
Shipping boom
There remains little certainty on inflation amid growing talk of tapering, with the global economy experiencing rarely before seen dislocations.
One such sector is in shipping, which many Australian companies complained about during the week.
Denmark’s Maersk Group delivered a strong quarter on the back of a spike in freight rate charges.
Revenue was up 50%, earnings increased by over 100% and profit hit US$3.71 billion from just US$427 million in the year prior.
Volumes increased 15% for the quarter, suggesting the economy still has some way to go, but it was freight charges that drove the result up 59%.
US stock market movers
Here’s how popular US stocks closed out the week on Friday.
- Monster Beverage (NASDAQ: MNST) up 5.5%
- Goldman Sachs (NYSE: GS) up 3.5%
- Berkshire Hathaway (NYSE: BRK.B) up 1.9%
- Expedia (NASDAQ: EXPE) down 7.9%
- Zillow (NASDAQ: Z) down 8.2%
- Zynga (NASDAQ: ZNGA) down 18.2%