US stocks open mixed with weak data, Europe turns lower

By Ovunc Kutlu

ANKARA (AA) - US stocks opened mixed on Wednesday with weak payrolls data, pushing European indexes lower despite posting strong gains earlier.

The Dow Jones fell 212 points, or 0.6%, to 34,903 at 9.40 a.m. EDT, while the S&P 500 fell 14, or 0.3%, to 4,408.

Pharma stocks helped the Nasdaq rise 21, or 0.14%, to 14,782. Novavax soared 9.8% after announcing a deal with the EU to provide up to 200 million doses of the coronavirus vaccine.

The mixed indexes came as US private payrolls increased 330,000 in July, well below market expectation of 695,000, according to ADP Research Institute’s national employment report that was released earlier in the day.

The yield on 10-year US Treasury notes decreased 3.4% to 1.134, and the dollar index fell 0.25% to 91.85. The VIX volatility index, known as the fear index, continued its increase by adding 2.3% to 18.45.

Precious metals also saw gains as gold rose 1.1% to $1,830 per ounce and silver increased 1.5% to $25.91.

Oil prices plummeted another 2% with Brent crude trading at $70.92 per barrel with a 2.1% loss and West Texas Intermediate around $68.67 -- a 2.7% decline.

All of this caused European indices to give up some gains posted earlier in the day.

Despite hitting an all-time high of 6,766.61 points, the French stock market, CAC 40, was down to 6,741.

STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 European countries, was at 467, down from its record high of 468.39.

Spain's IBEX 35 turned negative to 8,744 with a 0.33% loss at 1340 GMT. London's FTSE 100 was up 0.15% at 7,116.

Germany's DAX 30 was at 15,617 with a 0.4% gain, while Italy's Borsa Italiana FTSE MIB 30 was at 25,411, a 0.2% increase.