Wednesday witnessed worldwide stock prices falling on profit-taking, with the Euro dropping to an 11-1/2-year low. This jaw-dropping fall took place ahead of a European Central Bank meeting that is likely to shape bond-purchase stimulus plan, Reuters reported.
The Dow Jones industrial average, together with the Standard & Poor’s 500, slipped considerably on Monday. Shares of the European and Japanese also dropped below multi-year peaks.
Terry Sandven, U.S. Bank Wealth Management in Minneapolis senior equity strategist, said, “Given the strength we’ve had in the equity markets since the beginning of February, we are transitioning into a sideways-trending market as investors digest the recent gains and look for greater clarity.”
Amidst turbulence in the market, the U.S. payroll report is expected to be released on Friday. The increase of interest rates by Federal Reserve this early summer is likely to create new jobs and wage growth.
The robust February payroll is characterized by the addition of 212,000 workers, Payroll processor ADP said.
According to economists interviewed by Reuters, U.S. payrolls are projected to have grown at 240,000 in February, marginally below January’s 257,000 increase.
The stocks of the Brent crude dropped, which showed U.S. crude inventories climbing to record high. Iranian opposition to a nuclear deal proposed by the U.S., and sympathetic market comments made by Saudi Arabia’s oil minister helped hold the crude price above $60 a barrel.
The pan-European FTSEurofirst 300 index .FTEU3 was up by 0.8 percent at 1,557.03 at the end of the day, which saw a recovery from the fall in Markit’s final euro zone composite.
The plummeting Euro hit a one-month low against the Yen, down 0.9 percent against 132.55 yen.