European Stocks Rose Thanks to Investor Sentiment
European stocks rose on Thursday morning as investors awaited the next reading of U.S. nonfarm payrolls which is due on Friday. The pan-European Stoxx 600 gained 0.3% by mid-morning, with travel and leisure stocks climbing 1.1% to lead gains while basic resources fell 0.6%.
Analysts, as well as investors around the world, are closely monitoring data releases from the U.S. in the next few days. The nonfarm payrolls report for August is expected to show 720,000 jobs added as well as an unemployment rate dropping to 5.2%. The U.S. jobs data could influence when the Fed begins to taper its asset purchase program. The data could also influence the decisions of central banks in Europe. Recent statements from the Federal Reserve indicate that it likely will slow the pace of its monthly purchases of bonds. But before making that decision it wants to make sure that the U.S. jobs market is in good shape.
Stocks in Asia-Pacific
In the meantime in Asia-Pacific markets overnight, stocks were mixed as investors reacted to trade data and corporate news from the region. Australia’s Bureau of Statistics released interesting information about the country’s economy on Thursday. The country recorded a trade surplus of 12.117 billion Australian dollars (about $8.93 billion) in July.
Regulators in China summoned and interviewed 11 ride-hailing firms. Regulators’ move affected mainland Chinese stocks. They asked ride-hailing firms to rectify non-compliant behavior. A number of regulators, including the Ministry of Transport, jointly interviewed representatives of ride-hailing companies.
Regulators alleged that companies are recruiting unapproved drivers and vehicles. The Ministry of Transport said ride-hailing firms should deal with their own problems. They have to protect market orders of fair competition and create a sound environment for the healthy development of the ride-hailing industry.
Ride-hailing companies are ready to fix any problems. All of them should make sure they have the necessary approvals for cars and drivers. Companies should not entice drivers to join through fake promotions or transfer any business risks to drivers. Moreover, drivers should also have enough rest time and companies should reduce the commission they take from each ride.
Apart from workers’ rights, the world’s second-largest economy has put a big focus over the last few months. Regulators said ride-hailing companies should also protect users’ data. In 2021, China passed two of the main laws regarding data security and privacy and companies must adhere to new laws.
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