|
 U.S. shares were also expected to open lower, with futures
suggesting they would open down 0.4-0.6 percent.
The euro tumbled against the dollar before Thursday's ECB meeting at
which policymakers are expected to cut interest rates further into
negative territory.
Sentiment in commodity markets was buoyant, however, with oil
powering ahead and iron ore surging on expectations Chinese steel
mills will implement short-term output cuts.
Chinese shares rose for a fifth consecutive day as reassurances by
the country's leaders that the economy would remain on a sound
footing soothed investors' concerns.
The pan-European FTSEurofirst 300 index, which rose 0.7 percent on
Friday after a forecast-beating U.S. jobs report, fell 0.9 percent.
It remains up around 7 percent this year. Britain's FTSE 100 fell 1
percent.
"Momentum is fading again and, combined with persistently weak
inflation readings, should ensure a comprehensive package of
stimulus measures," Peel Hunt strategist Ian Williams said,
referring to the ECB meeting, which is also expected to deliver an
extension of its asset-purchase program.
In their first reaction to the U.S. data, Asian shares gained.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3
percent to its highest since Jan. 4. It has recouped about 80
percent of its 2016 losses.
Japanese shares snapped a four-day winning streak as the yen
strengthened and investors took profits on last week' sharp rally.
The Nikkei 225 index <.N225> closed down 0.6 percent.
Chinese shares rose after Prime Minister Li Keqiang spelled out on
Saturday a new five-year economic plan, which included an average
growth target of 6.5 to 7 percent and a moderate increase in the
fiscal deficit to 3 percent of GDP this year.
The CSI300 index of the biggest listed companies in Shanghai and
Shenzhen closed up 0.4 percent and the Shanghai Composite rose
0.9 percent.
Friday's payrolls data showed 242,000 jobs were created last month
and assuaged fears the U.S. economy could be headed into recession.
It also revived prospects of further Federal Reserve interest rate
hikes this year, something markets had priced out.
Prices still suggest no chance of a hike this month, but a 50
percent chance of a June hike, according to CME Fedwatch.
An unexpected fall in average earnings soothed concerns the Fed
would be in a hurry to raise interest rates, however.
[to top of second column] |
The data and its implications for the economy helped lift oil
prices, which were also supported on Monday by a fall in the number
of active U.S. rigs to its lowest since 2009.
Brent, the global benchmark for crude prices, was up 54 cents at
$39.26. It has risen more than a third from this year's lows, though
analysts caution that the glut that saw it fall 70 percent from June
2014 levels remains.
Iron ore futures surged almost 20 percent to around $60 a tonne in
anticipation of a short-term output cut in China's top
steel-producing region to improve air quality.
RAMP UP
The dollar rose 0.3 percent against a basket of currencies , with
the euro off 0.5 percent at $1.0946.
"There is still a higher likelihood that they over-deliver and the
euro goes down to around $1.08, maybe the high $1.07s," said Ulrich
Leuchtmann, head of currencies research at Commerzbank in Frankfurt.
"Clearly there will be a much bigger move if they do not deliver."
The yen, often sought when risky assets are out of favor, bucked the
trend and rose 0.2 percent to 113.58 per dollar.
German 10-year Bund yields fell 2.5 basis points to 0.21 percent.
U.S. 10-year yields, which rose after Friday's jobs data, were up
1.7 bps at 1.90 percent.
Gold held around $1,270 an ounce, just below last week's 13-week
high, on weak shares and the U.S. rate outlook.
(Additional reporting by Hideyuki Sano in Tokyo, Marius Zaharia and
Patrick Graham in London; Editing by Catherine Evans)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
