|
Labor Department data showed on Friday that the U.S. economy
added 339,000 jobs last month, significantly higher than most
estimates and suggesting tighter labor market conditions which
might prompt a Fed rate hike.
The market mood was also supported by the U.S. Senate passing
bipartisan legislation on Thursday that lifted the federal
government's $31.4 trillion debt ceiling and averted what would
have been a first-ever default. The bill, which had been passed
by the House of Representatives on Wednesday, heads to President
Joe Biden, who is expected to sign it.
"We are of the view that the Fed will keep interest rates steady
until sometime next year," said Tom Plumb, portfolio manager at
Plumb Balanced Fund, adding that the U.S. economy is much
stronger than most people realize.
The MSCI world equity index, which tracks shares in almost 50
countries, was up 1.52%. The pan-European STOXX 600 index (.STOXX)
rose 1.21%.
On Wall Street, all three main indexes ended higher, led by
gains in financials, industrials, consumer discretionary,
technology and healthcare stocks.
The Dow Jones Industrial Average rose 2.12% to 33,762.76, the
S&P 500 gained 1.45% to 4,282.37 and the Nasdaq Composite added
1.07% to 13,240.77.
U.S. Treasury yields were higher as investors bet on a possible
increase in rates although many believe the Fed is likely to
stick with a pause in hikes when it meets later this month.
Benchmark 10-year notes were up at 3.695%, while yields on the
more rate-sensitive 2-year notes rose to 4.509%.
The U.S. dollar edged higher in choppy trading after the strong
job growth data. The dollar index rose 0.483%, with the euro
dropping 0.5% to $1.0707.
Oil prices gained more than 2% on Friday as attention turned to
a meeting of the Organization of the Petroleum Exporting
Countries (OPEC) and allies this weekend.
Brent futures rose 2.5% to settle at $76.13 a barrel, while U.S.
West Texas Intermediate (WTI) crude rose 2.3% to $71.74.
Gold prices slipped as the U.S. dollar rose. Spot gold dropped
1.5% to $1,948.11 an ounce, while U.S. gold futures fell 1.55%
to $1,947.40 an ounce.
(Reporting by Chibuike Oguh in New York; Editing by Aurora Ellis
and Matthew Lewis)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
