Global stock markets were mixed as investors stayed cautious on how central banks would move towards monetary tightening amid convincing growth and inflation risks.
Global cues were also weak as investors eyed the outcome of US-China trade talks as well as the US jobs report.
Back home, markets closed the week in the red dragged by profit booking, after hitting three-month highs, ahead of elections in the key state of Karnataka.
The 31-share BSE Sensex closed down 187.76 points at 34,915.38 and the 50-share NSE Nifty fell 61.40 points to 10,618.30. For the week, the Sensex lost 0.7 percent and Nifty shed 1.1 percent after rallying 7 percent for the previous five consecutive sessions. The Nifty VIX for the week closed at 12.99 percent and is expected to remain sideways.
European stocks traded higher amid US-China trade talks, and ahead of key economic data. Britain’s FTSE and Germany’s DAX were up half a percent.
The three major US stock indexes rose more than 1 percent on Friday after weaker-than-expected US wage growth helped to calm investor fears about rising interest rates and inflation, though the S&P 500 and Dow Industrials still posted losses for the week. For the week, the Dow lost 0.2 percent and the S&P fell 0.24 percent. The Nasdaq gained 1.26 percent on the strength of tech stocks’ rally on Friday.
US job growth increased less than expected in April and the unemployment rate dropped to near a 17-1/2-year low of 3.9 percent as some out-of-work Americans left the labour force. Nonfarm payrolls increased by 164,000 jobs last month, the Labor Department reported. Data for March was revised to show the economy adding 135,000 jobs instead of the previously reported 103,000.
US factory orders surged up by 1.6 percent in March, matching the upwardly revised jump seen in February. Economists had expected factory orders to shoot up by 1.4 percent compared to the 1.2 percent increase originally reported for the previous month.
US trade deficit narrowed to USD 49 billion in March from a revised USD 57.7 billion in February. Economists had expected the trade deficit to narrow to USD 50.0 billion from the USD 57.6 billion originally reported for the previous month.
European markets closed higher on Friday, rallying in the afternoon trade after a robust US jobs report. The Stoxx Europe 600 index was up 0.6 percent to end at 387.03, logging a 0.6 percent gain on the week. The FTSE also registered a positive close for the week gaining 0.4 percent while the CAC was up 0.16 percent.
Eurozone inflation eased slightly in April on the slower increase in services cost. Inflation eased to 1.2 percent in April from 1.3 percent in March.
Asian markets ended in the red as investors monitored trade talks between the US and China. Hong Kong’s Hang Seng and South Korea’s Kospi were down 1 percent each while China’s Shanghai Composite declined 0.3 percent and Australia’s ASX 200 fell 0.6 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 percent and looked set for a third straight weekly loss.moneycontrol