Mixed mood for markets (ISFM) (14-01-2011)

A weak U.S. jobs report in combination with China’s move to tighten lending led the markets in today’s session to appear a little mixed with euro extending its rally close to six-month highs.

European indexes traded lower on Friday with Intel Corporation being the only gainer as it lifted related tech stocks like ARM Holdings PLC, which soared 10%. However, the major European stocks were in decline against the news that inflation risks had risen and economic data were better than expected.

On jobs sector, the U.S. labor report was quite disappointing leading to a negative sentiment, after yesterday’s successful eurozone bond auctions. Applications for unemployment benefits rose 35,000 from the week before to 445,000 showing the highest level since October and above what economists had predicted.

China's central bank on Friday raised the amount of money that banks must keep on reserve for the seventh time in a year, an attempt to counter inflation and cool off growth while Japan's Nikkei 225 stock average closed down 0.9 percent at 10,499.04.

Wall Street opened down slightly ahead of the release of key economic data, including retail sales and consumer prices for December and earnings from companies like JP Morgan Chase. Retail sales rose for a sixth month in a row in December with sales in autos and furniture the biggest gainers.

Oil prices fell to $90.42 a barrel as traders weighed whether demand in a slowly recovering U.S. economy will be enough to push crude above $100 soon, while Alaska's main oil pipeline will shut from Friday evening to install a bypass.

Source: ISFM