Friday, 2 November 2018

US stocks jump as manufacturing index falls

Markets were mostly higher on Thursday.

The S&P 500 jumped 1.1 percent and the STOXX Europe 600 rose 0.4 percent. However, the Nikkei 225 fell 1.1 percent.

Jeff Carbone, co-founder of Cornerstone Wealth Group, said that “we’re seeing a bottoming process”.

“White House economic adviser Kudlow said that more tariffs on China are not ‘set in stone’, which may have boosted somewhat further market sentiment,” wrote Charalambos Pissouros, senior market analyst at brokerage and investment firm JFD Brokers, in a note.

A report in the US on Thursday showed that the ISM manufacturing index fell to a six-month low of 57.7 in October from 59.8 in September.

CNBC's Jim Cramer thinks that a slowdown in manufacturing growth could lead the Federal Reserve to pause its interest rate hikes.

“I've been saying that we need to see the Fed or the president blink in their respective battles against inflation and China. Neither one blinked today, but ... we got a glimpse of how things could go right and it sent stocks flying,” said Cramer.

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