Forexpros – U.S. stock futures pointed to sharp losses at the open on Monday, as markets participants had their first chance to react to Friday’s dismal jobs report, which renewed concerns over the strength of the U.S. economic recovery.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 0.9%, S&P 500 futures signaled a drop of 1.15%, while the Nasdaq 100 futures indicated a decline of 1.1%.
With no major economic data due Monday, markets remained focused on Friday’s disappointing U.S. employment report.
U.S. equity markets were closed for the Good Friday holiday on Friday, but stock futures fell sharply following the release of the weaker-than-expected jobs data.
The U.S. Department of Labor said nonfarm payrolls rose by a meager 120,000 in March, the lowest since December and well below expectations for a 203,000 increase.
It was the first time since November that hiring failed to top the 200,000 level, renewing concerns over the health of the U.S. economy.
The unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February. However, the data showed that the decline stemmed entirely from people dropping out of the labor force.
The weaker-than-expected jobs report broke a string of strong employment gains in recent weeks, raising questions about the health of the U.S. economy.
Meanwhile, shares in exporters with high exposure to the Chinese market could come under pressure after official data released earlier showed that consumer price inflation in China accelerated by 3.6% in March, up from 3.2% in February and above expectations for a 3.3% increase.
The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world’s second largest economy.
Market participants were also bracing for the start of the U.S. first quarter earnings season on Tuesday.
Aluminum giant Alcoa was to be the first Dow Jones Industrial Average component to report earnings for the first quarter after Tuesday’s closing bell. Google, JP Morgan Chase and Wells Fargo are also on tap to report this week.
Across the Atlantic, European stock markets remained closed for the Easter holiday.
During the Asian trading session, Japan’s Nikkei 225 Index tumbled 1.5%, while South Korea’s Kospi Composite Index dropped 1.6%. With markets in Hong Kong, Australia, New Zealand and Thailand closed for holidays, trading volumes were thin.
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