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UK markets see red
UK and European equities are swimming in a sea of red as the strong jobs report from the US has fuelled fears that tapering will happen sooner rather than later.
Banking stocks are feeling the pinch after another blow to the eurozone following yesterday's European Central Bank rate cut in a bid to stimulate growth, as S&P have downgraded France’s credit rating. Could this be the next round of the eurozone debt crisis?
Dow recovers losses
Across the pond, the Dow is a touch lower after recovering early losses. In October the US added over 200,000 new jobs, which smashed economists' estimates and sent stocks lower as traders currently view good news for the economy as bad news for the stock market. The non-farms payroll report was a shock to the system as traders were pricing in a low figure due to the partial shutdown in October. If the number is revised next month it would not be a surprise to traders.
Twitter is a touch lower as some investors don’t want to wait around to secure their profits. However, the stock is still up 66% from its IPO price.
Traders dropped gold like a lead balloon after the jobs data, due to fears that the Federal Reserve will begin tapering its stimulus package.
Copper traders were not fazed by the healthy figures from China overnight, indicating that both imports and exports are higher.
The US dollar jumped after the number of new jobs created last month cleared the 200,000 hurdle. The US economy needs to add a similar number of new jobs every month if it wants its unemployment rate to go below 7%.