Pessimism returned to markets on Wednesday after reports from the labor and services sectors suggested that the U.S. economy is still struggling to recover, where the ADP employment report showed that U.S. private employers added 179,000 jobs only in April, compared with the prior 207,000 jobs added in March and below median estimates of 198,000 added jobs.
Moreover, the Institute for Supply Management released the ISM Non-manufacturing index for the month of April, where the index eased sharply to 52.8 from the prior estimate of 57.3 and well below estimates of 57.5.
The data casted doubt over the progress of the recovery and the health of the U.S. economy, where investors have been hopeful that the U.S. economy can finally start recovering over a strong pace, nevertheless, it seems that the pace of recovery will be moderate just like the Federal Reserve Bank signaled last week.
Stocks in the United States dropped on Wednesday after the worse than expected economic data, where the Dow Jones Industrial Average was down by nearly 0.70% to trade around 12,715, while the S&P 500 index was down by nearly 0.75% to trade around 1,346. European stock indexes were also lower on Wednesday before closing, where FTSE 100 was down by nearly 1.70% trading at 5980 and the DAX was also down by nearly 1.70% to trade around 7370.
The U.S. dollar was declined against majors earlier on Wednesday, while gold prices extended the losses for a third day to trade around $1528 an ounce and crude oil prices also declined for a third consecutive to trade around $109.00 a barrel.
Originally posted here
Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
