Global share markets advanced on Monday, recovering from a sharp selloff on Wall Street triggered by weaker-than-expected U.S. employment data.
France’s CAC 40 gained 0.8% to 7,609.44 in early trading, while Germany’s DAX rose nearly 1.0% to 23,702.42. Britain’s FTSE 100 inched up 0.4% to 9,108.28. Futures on Wall Street also pointed to gains, with Dow futures up 0.6% at 43,951.00 and S&P 500 futures also climbing 0.6% to 6,302.75.
Asian markets ended mixed after reacting to U.S. President Donald Trump’s surprise announcement of sweeping tariffs on imports from key trading partners, which are set to take effect Thursday.
Japan’s Nikkei 225 lost 1.3% to close at 40,290.70, after recovering from deeper earlier losses. Hong Kong’s Hang Seng advanced 0.9% to 24,733.45, and China’s Shanghai Composite rose 0.7% to 3,583.31. South Korea’s Kospi gained 0.9% to 3,147.75, while Australia’s S&P/ASX 200 was little changed at 8,663.70.
Investor sentiment took a hit after the U.S. Labor Department reported that only 73,000 jobs were added in July, far below forecasts. Revisions also erased 258,000 jobs from May and June payrolls. Analysts say the disappointing data has increased expectations that the Federal Reserve could cut interest rates as early as September.
“The labor market, once a pillar of resilience, is now looking more like a late-cycle casualty,” said Stephen Innes of SPI Asset Management.
Further concerns emerged after Trump abruptly dismissed the head of the agency responsible for compiling jobs data, sparking fears over possible interference in future economic reporting.
The weak data triggered a sharp move in the bond market. The yield on the 10-year U.S. Treasury fell to 4.21% from 4.39%, while the two-year yield — closely watched for Fed rate expectations — dropped to 3.68% from 3.94%.
The Federal Reserve has held its benchmark interest rate steady since December but faces growing pressure, including from President Trump, to lower rates. At its latest meeting, the Fed again kept rates unchanged, even as its preferred inflation measure rose to 2.6% in June from 2.4% the month before — still above the 2% target.
Meanwhile, U.S. businesses have expressed concern over the impact of the latest tariff measures, warning that rising import costs could hurt profits and lead to higher prices for consumers.
In energy trading, U.S. benchmark crude slipped 16 cents to $67.17 per barrel, while Brent crude, the global benchmark, dropped 24 cents to $69.43
In currency markets, the U.S. dollar strengthened to 148.05 Japanese yen from 147.26 yen. The euro weakened to $1.1557 from $1.1598.