Stocks retreat on US jobs data

Share prices went down yesterday as the market digested the latest US jobs data, which bolstered expectations of a rate hike by the US Federal Reserve.

The benchmark Philippine Stock Exchange index (PSEi) shed 43.58 points, or 0.57 percent, to finish at 7,534.71 while the broader All Shares index finished lower by 14.82 points or 0.32 percent to settle at 4,489.69.

All counters were down led by the holding firms index with a 0.94 percent drop.

Total value turnover was thin at P4.99 billion as decliners edged out advancing stocks, 103 to 60 while 53 stocks were left unchanged.

US stocks also slipped after the US Labor Department released the latest jobs data on Friday.

It showed steady growth in the labor market, which makes the Federal Reserve on track to raise interest rates this year.

After the announcement, S&P 500 lost 0.33 percent to 2,153.74 while the Dow Jones index declined by 0.15 percent to 18,240.49.

Similarly, the Nasdaq dropped 0.27 percent to 5,292.40.

The latest data showed that the US economy is back on the growth path even as the jobless rate rose to five percent.

As such, traders expect a rate hike in December rather than in November.

US Federal Reserve officials have said that the increase in rates would be gradual as they indicated a desire to tighten policy to a more normal level.