NEW YORK (Reuters) – Concerns over China-U.S. trade tensions gave European shares their worst week of losses in two months and sank U.S. stocks on Friday, overshadowing the lift from higher oil prices and jobs data.
While Europe was higher on the day with a small recovery after three sessions of heavy losses, the trade standoff between Washington and Beijing was still a major lingering worry for investors.
“Volatility is high and investors are twitchy. It has been a dreadful week for European markets, and today’s positive move can’t mask the previous losses,” said David Madden, market analyst at CMC Markets UK.
The pan-European STOXX 600 index rose 0.62 percent, while an index of London’s 100 largest listed companies rose 1.1 percent.
The Dow Jones Industrial Average fell 558.72 points, or 2.24 percent, to 24,388.95, the S&P 500 lost 62.87 points, or 2.33 percent, to 2,633.08 and the Nasdaq Composite dropped 219.01 points, or 3.05 percent, to 6,969.25.
Wall Street saw its biggest weekly losses since March, led by declines in big internet and technology shares.
The fall was a reversal from earlier in the day, when stocks were higher on U.S. labor data that showed employers hired fewer workers than expected in November.
That supported a view that U.S. growth is moderating and the Federal Reserve may stop raising rates sooner than previously thought.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 7, 2018. REUTERS/Brendan McDermid
Non-farm payrolls increased by 155,000 last month, but missed economists’ expectation for a rise of 200,000.
“It is still consistent with the Fed raising short-term interest rates, said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. “But I think the main theme here is that investors are expecting the Fed to be