Market update: US sentiment down on disappointing data; BoJ jolts markets with radical overhaul of policies

A lower-than-expected survey of private employers (the ADP report), showing private sector job hiring was the slowest in five months in March, rekindled worries over the strength of the US economic recovery. The downbeat sentiment was reinforced by another disappointing number from the services sector, which also revealed the slowest pace of growth in seven months. As North Korean developments further dampened the mood, US stocks fell with the Dow Jones closing down 0.8% while the S&P 500 shed 1.1%.

The big headline early this morning came from Japan as the central bank radically overhauled policies and strengthened its stimulus programme by pledging to adapt a new balance sheet target and to double bond holdings in two years, in order to combat nearly two decades of deflation. The yen fell on the news by 2.4% against the dollar, while the Nikkei 225 recouped its earlier losses to close the day up 2.2%. European stocks were inching their way up in early trading this morning ahead of the European Central Bank meeting today. While no change in policy is expected, Draghi’s comments post the meeting are keenly awaited. At the time of writing both the FTSE Eurofirst 300 and FTSE 100 indices were almost flat.