(AP:LONDON) U.S. and European stock markets were steady Friday after further depressing news on the U.S. jobs front further reined in any market euphoria from the previous day's meeting of the Group of 20 world leaders.
Though the Labor Department reported that the U.S. shed 663,000 jobs in March _ more or less what the market was anticipated, it revised up its figure for the number of jobs lost in January by nearly 100,000 more than previously anticipated. In addition it said the unemployment rate rose to a 25-year high of 8.5 percent in March from 8.1 percent in February. As a result, the U.S. has lost over 5 million jobs since the recession started in December 2007.
"These massive job losses point to continued declines in output and we expect another big fall in gross domestic product to be reported for the first quarter," said Arek Ohanissian, an economist at the Centre for Economic Business and Research in London.
"The release will thus wash away some of the positive sentiment coming off the heels of the G-20 summit," added Ohanissian.
Soon after the open, the Dow Jones industrial average was up 9.64 points, or 0.1 percent, at 7,987.72 while the broader Standard & Poor's 500 index rose 1.56 points, or 0.2 percent, to 835.94.
Before the jobs data, the markets were predicting a modestly higher opening on Wall Street.
In Europe, the FTSE 100 index of leading British shares fell 49.41 points, or 1.2 percent, to 4,075.56 while the CAC-40 in France was 21.68 points, or 0.7 percent, lower at 2,970.38. Germany's DAX was just about able to buck the trend, trading 4.08 points, or 0.1 percent, higher at 4,386.
Friday's performance contrasted with the previous session as the initial euphoria over the deal thrashed out by the Group of 20 dissipated amid a growing realization that much of the $1.1 trillion pledged to combat the global economic crisis had already been announced and that the impact of the measures agreed upon will only have a negligible impact on the faltering global economy. Stock markets around the world had also been encouraged earlier in the week by some relatively rosy economic reports, particularly out of the U.S.
Though the G-20 have given the International Monetary Fund the financial strength to respond to financial crises around the world and provided some new funds to kick-start depressed trade volumes, they failed to agree on a new fiscal stimulus that would have boosted growth in the richer corners of the world and shied away from any new concrete measures to clean up the banks' balance sheets.
Neil Mellor, an analyst at the Bank of New York Mellon said investors have an opportunity to focus on the economic fundamentals now that the G-20 meeting has come and gone, and that there are big risks for disappointment.
"Not only has the future of the U.S. auto industry yet to be resolved _ potentially a lynchpin in a sustained rally _ but investors have also to contend with a likely barrage of negative economic data releases _ having paid little heed to some recent forecast downgrades in the scramble for bargains," said Mellor.
Earlier, Asian markets climbed modestly on the back of Thursday's announcements by the world leaders and after Chinese manufacturing figures showed the first rise in six months.
Japan's Nikkei 225 stock average added 30.06 points, or 0.3 percent, to 8,749.84, but traded well off its highs. Hong Kong's Hang Seng edged up 23.72, or 0.2 percent, to 14,545.69. South Korea's Kospi rose 0.5 percent to 1,283.75.
Stock measures in Australia, Taiwan and Singapore gained about 1 percent or more. But Shanghai's key index, after trading in the green, closed down 0.2 percent.
Benchmark crude for May delivery fell 66 cents to $51.98. The contract rose $4.25 overnight to settle at $52.64.
