Global shares extend gains after U.S. jobs report, bonds rise

LONDON Fri Jun 6, 2014 7:16pm IST

The curve of the German share price index DAX board, is pictured at the Frankfurt stock exchange June 6, 2014.    REUTERS/Remote/Stringer

The curve of the German share price index DAX board, is pictured at the Frankfurt stock exchange June 6, 2014.

Credit: Reuters/Remote/Stringer

Related Topics

LONDON (Reuters) - Global equity markets rose and bond yields fell on Friday after a solid U.S. jobs report showed a recovering economy and added to an already buoyant market lifted by the European Central Bank's pledge to douse potential deflation with bundles of cash.

U.S. equity futures rose and European stock indexes extended gains after the nonfarm payrolls report showed U.S. employers maintained a solid pace of hiring in May, returning employment to its pre-recession level.

The U.S. economy has recouped the 8.7 million jobs lost during the recession, adding just under 217,000 jobs in May, while the unemployment rate held steady at 6.3 percent, the Labor Department said.

"This number is not a surprise and should be a rallying cry for the bulls. There's no shock on either side of the tape, but it supports the historical norm of the second quarter typically being the best of the year," said Todd Schoenberger, managing partner at Landcolt Capital in New York.

The FTSEurofirst 300 index of top European shares extended gains, rising 0.43 percent to 1,380.21 points.

U.S. stock index futures pointed to a higher open. S&P 500 futures SPc1 rose 4 points, or 0.21 percent. Dow Jones industrial average futures added 50 points and Nasdaq 100 futures rose 13.75 points.

U.S. Treasuries prices gained and German bund futures hit session highs of 145.99 after the U.S. jobs data, up 98 ticks on the day.

Benchmark 10-year notes were last up 9/32 in price to yield 2.5518 percent.

The euro gyrated in a narrow range, trading flat to slightly lower versus the U.S. dollar. The euro was last down 0.05 percent at $1.3651.

Brent rose 19 cents to $108.98 a barrel. U.S. crude was at $102.92 a barrel, up 44 cents.

Markets were buoyed after the ECB on Thursday cut interest rates, including taking deposit rates for banks below zero, and pledged hundreds of billions more euros of cheap funds for banks.

The ECB refrained from following the U.S., Japanese and British central banks in pursuing outright bond-buying. But its president, Mario Draghi, did not rule it out in the future, saying, "We aren't finished here."

(Reporting by Herbert Lash; Editing by Meredith Mazzilli)

FILED UNDER:

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage