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Equities rally as US jobs data lifts sentiment

US equity markets rebounded on Wednesday after better-than-expected private sector payrolls and improved service sector sentiment offset concerns over missing official labour reports due to the federal government shutdown. Major US indices posted solid gains, while Asia-Pacific stocks followed higher on Thursday, led by a recovery in Japanese and Chinese shares after recent tech-driven declines. European markets also finished broadly higher midweek, supported by upbeat regional growth data and a rebound in German manufacturing orders. Gold prices were stable just under USD 4000 per ounce and bitcoin slightly higher following recent losses, near USD 103,500.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

Stock chart
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The major US equity indices advanced on Wednesday, with the Dow Jones Industrial rising 0.6% to 47,374.42 points after falling in the previous session, while the S&P 500 and Nasdaq 100 posted similar gains. Investor sentiment improved following ADP data indicating US private sector job growth exceeded expectations for October, compensating for the lack of official government labour figures due to a partial federal shutdown. The ISM services index also signalled stronger economic activity. Notable corporate results contributed to volatility, with McDonald’s and Amgen shares gaining on solid earnings, Micron Technology reaching a record high after a strong rebound, while Pinterest and Trex shares dropped significantly after disappointing news.

US private payrolls surpass forecasts in October

Private companies in the United States increased payrolls by 42,000 in October, exceeding market expectations and following a revised decline of 29,000 in September, according to the ADP National Employment Report released on Wednesday. All the job growth was generated by large businesses with at least 250 employees, which added 76,000 positions, while smaller companies lost 34,000 jobs. Wage growth for job-stayers was steady at 4.5% year-on-year, with job changers seeing a 6.7% increase, reflecting a largely flat pay trend over the past year. The latest figures, released amidst a government shutdown that has paused official labour market statistics, indicate modest improvement but ongoing weakness at small firms.

Asia stocks rebound after tech slump

Asian equity markets recovered on Thursday, with Japan’s Nikkei 225 gaining 1.2% and China’s CSI 300 up 1.3%, after Wall Street’s technology-driven selloff subsided and investors shifted focus to regional data and earnings. Hong Kong’s Hang Seng Index outperformed, rising 1.8%, and Korea’s Kospi climbed 0.6%. Australia’s S&P/ASX 200 was up 0.3% after the country's September trade surplus surged to AUD 3.94 billion, versus AUD 1.11 billion in the previous month, primarily on stronger commodity exports. Bank results influenced trading in Singapore and Australia, as DBS Group reported record quarterly income and National Australia Bank’s shares slipped after lower annual profits. Additionally, legal developments in the US regarding tariffs imposed by US President Donald Trump drew attention due to potential implications for global trade policy.

Euro-area growth accelerates to 29-month high

The euro-area economy expanded at its fastest pace since May 2023 in October, with Eurozone Composite PMI rising to 52.5 from 51.2 in September, supported primarily by robust growth in the services sector. Demand for goods and services increased at the sharpest rate in two-and-a-half years, while employment grew at its quickest pace since June 2024, despite slightly softer business confidence. Input cost inflation eased for a second consecutive month but selling prices rose at their fastest rate since March as firms took a more assertive approach to price setting. Spain and Germany led the regional upturn, while France experienced a deeper contraction, highlighting diverging national trends within the euro area. European stock indices registered modest gains on Wednesday. The Euro Stoxx 50 rose 0.2%, Germany’s DAX gained 0.4%, France’s CAC 40 advanced 0.1%, and the Swiss Market Index was up 0.4%.

German manufacturing orders rebound in September

German manufacturing registered a 1.1% increase in new orders in September 2025 compared to August, following a 0.4% decline in the previous month, according to figures released by Destatis on Wednesday. However, orders remained 4.3% below the level seen one year earlier, with growth driven by demand in the automotive, electrical equipment, and other transport sectors, while basic metal and fabricated metal products lagged. Foreign orders strengthened, rising 3.5%, as domestic demand declined by 2.5%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Airbnb, AstraZeneca, ConocoPhillips, Deutsche Post, Henkel, Swisscom, and Take-Two.

Economic data in focus: German industrial production (08:00), Bank of England interest rate decision (13:00), UK unemployment rate (13:00), US weekly initial jobless claims (14:30), Canadian Purchasing Managers’ Index (16:00).

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Editor: Alessandro Fezzi
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