DAX Gains 0.39% In Anticipation Of US NFP Report
European stock indexes rose today, while investors followed the trade negotiations between the US and China and waited for key economic data on the US labor market. The German DAX equity index is trading at 12.738 level, gaining 0.39%.
Today’s data showed that March’s +0.1% rise in Eurozone retail sales was weaker than the consensus forecast of a +0.5% increase. March’s Eurozone retail sales data suggest that consumer spending had a weak Q1 and April’s composite PMI implies that the pace of GDP growth is unlikely to fully rebound after a slow Q1. Eurozone Services PMI showed a fall to 54.7 in April from March's 54.9. The preliminary estimate was 55.0. German Services PMI fell to 53.0 in April from 53.9 in the previous month (the lowest level since September 2016). The preliminary estimate was 54.1.
Economists forecast the NFP to have strong headline numbers recovering from weather factors that impacted March's report. It is expected, that NFP rose by 192.000 jobs last month, after it showed the smallest gain in six months in March (103.000). Average hourly earnings are expected to have risen 0.2% in April. That would leave the annual increase in average hourly earnings at 2.7 percent, steady from the pace recorded in March. Unemployment rate is forecast to fell to 4.0%.