LONDON Jan 6 Stocks rose and the dollar quickly
turned higher after an initial wobble following U.S. jobs data
on Friday, a stronger than expected increase in earnings made up
for a weaker-than-forecast payrolls figure.
U.S. employment increased less than expected in December but
a rebound in wages pointed to sustained labor market momentum
that sets up the economy for stronger growth and further
interest rate increases from the Federal Reserve this year.
The dollar index briefly fell following the miss in
payrolls, but quickly recovered. It was last up 0.4 percent for
The dollar rose to a session high against the yen of 116.42
yen, and also hit a high for the day against the euro following
U.S. interest rate futures pared gains and some contracts
turned lower following the stronger-than-forecast rise in
average hourly earnings.
"The non-farm payroll and jobs report numbers have shown a
slightly weaker number, but the overall employment picture in
the US has improved in December," James Hughes, chief market
analyst at brokerage GKFX, said in a note.
"Despite the miss in the headline grabbing non farm payroll
number, the overall jobs report can be considered a strong one
with the all-important average earnings jumping from a negative
reading last month of -0.1 percent to 0.4 percent this month."
Wall Street futures trimmed losses and turned higher after
the data, while the pan-European STOXX 600 rose from
session lows touched just before the data was released. The
index remained down 0.2 percent on the day.
Sterling hit a day's low against the dollar after the data.
British government bond futures spiked after the data
and then plummeted around 25 ticks. They were last down 19 ticks
on the day at 124.76. Benchmark gilt yields hit
session highs across the range of maturities.
Gold briefly rallied, but turned lower and was last
down 0.4 percent, near levels seen prior to the data.
(Editing by Jeremy Gaunt)