How We Present
Markets stay buoyed by US jobs figures
by Pan Pylas, AP Business Writer
The Associated Press Translate This Article
6 August 2012
LONDON (AP) - Financial markets remained in a buoyant mood Monday by figures showing the U.S. economy generated a greater than expected amount of jobs in July and by a growing belief that the European Central Bank could do more in the months ahead to contain the continent's debt crisis.
With little scheduled economic news due, Friday's figures showing the U.S. economy adding 163,000 jobs in July continued to drive sentiment. Though the figures eased concerns over the world's largest economy, the rise in the unemployment rate to 8.3 percent provided more evidence, if any were needed, that the recovery is patchy.
All things considered though, the figures were welcomed after three months when payrolls failed to meet expectations. The data also helped markets clamber off lows registered on Thursday when investors were disappointed by comments from European Central Bank president Mario Draghi.
'Those bumper non-farm payroll figures on Friday seem to be providing markets with a lasting distraction from the ongoing woes of the eurozone,' said Fawad Razaqzada, market strategist at GFT Markets.
In Europe, Germany's DAX was up 1 percent at 6,938 while the CAC-40 in France rose 1.2 percent to 3,415. The FTSE 100 index of leading British shares was 0.6 percent higher at 5,821.
In the U.S., the Dow Jones industrial average was up 0.6 percent at 13,168 while the broader S&P 500 index rose 0.5 percent to 1,398.
Also helping to shore up markets has been a bit of a reassessment of Draghi's comments last Thursday. Though Draghi failed to meet market expectations at the time, investors have turned a little more positive.
'Despite last week's disappointment, Draghi's comments did suggest assistance in the near future and this is likely to increase risk appetite,' said James Hughes, chief market analyst at Alpari.
That reassessment has helped ease the pressure on Spain and the country's 10-year yield dipped further below the 7 percent threshold that is widely-considered unsustainable in the long-run. It's down a further 0.10 percentage points to 6.73 percent, having spiked up above 7 percent in the aftermath of Draghi's comments.
It's been an eventful day on Madrid's main stock exchange. After a five-hour blackout blamed on a technical glitch, the IBEX 35 was up 2.5 percent when trading restarted.
Spain remains the epicenter of Europe's debt crisis especially as concerns over whether Greece will get its next batch of bailout cash have diminished. Weekend comments from the country's debt inspectors suggest that progress has been made.
Last Friday, Spain's Prime Minister Mariano Rajoy came close to acknowledging that he has considered a sovereign bailout for the country. He told reporters he would consider asking for financial aid only once the ECB had fleshed out its crisis-fighting plans for buying government bonds.
And the euro was steady having recovered the losses it posted following Draghi's comments on Friday. It was up a further 0.1 percent at $1.2397 on Monday.
A weekend statement by the People's Bank of China indicating it would intensify policy fine-tuning also helped investment sentiment in Asia earlier.
That was among factors helping to lead Asian stock markets sharply higher.
Japan's Nikkei 225 index rose 2 percent to finish at 8,726.29 and Hong Kong's Hang Seng climbed 1.7 percent to 19,998.72. South Korea's Kospi added 2 percent to 1,885.88.
Oil markets were steady having pushed above $90 a barrel on Friday. Benchmark crude was down 50 cents at $90.90 a barrel in electronic trading on the New York Mercantile Exchange.
Copyright © 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based-Total Knowledge based-programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.
Translation software is not perfect; however if you would like to try it, you can translate this page using:
Send Good News to Global Good News.