Global stocks down after strong U.S. jobs data

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Global stock markets declined Wednesday after strong U.S. jobs data fueled expectations of more interest rate hikes and Chinese manufacturing activity weakened.

London and Frankfurt opened lower. Shanghai, Tokyo and Hong Kong declined. Oil prices lost more than US$1 per barrel.

In early trading, the FTSE 100 in London fell 0.6% to 7,319.62 and the DAX in Frankfurt shed 0.4% to 12,913.41. The CAC 40 in Paris fell 0.5% to 6,178.78. In Asia, the Shanghai Composite Index fell 0.8% to 3,202.14 after an index of manufacturing showed activity contracted again in August. The Hang Seng ended up less than 0.1% at 19,954.39 after spending most of the day in negative territory.

Sydney's S&P-ASX 200 shed 0.2% to 6,986.80. New Zealand advanced while Singapore and Indonesia declined. Indian markets were closed for a holiday. "If the labor market doesn't break and the consumer remains resilient, Wall Street might start pricing in rate hikes for February and March," Moya wrote.

 

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