Strong US jobs data boosts global stocks

Published: January 05, 2019 11:43:47 | Updated: January 26, 2019 15:05:48

World stock markets rallied on Friday while bond yields rose after sharply declining earlier in the week ahead of the US and China trade talks and US employment data pointed to economic strength.

Equities around the globe were also buoyed by the news that China and the United States will hold trade talks in Beijing on Monday and Tuesday.

In the United States, stocks got another boost as stronger-than-expected US employment data soothed some concerns of slowing economic growth.

However, safe-haven assets that had climbed this week as equity markets were roiled came down substantially.

Treasury yields rose sharply after the release of US employment data, and the dollar gained 0.6 per cent against the yen. Spot gold prices, which reached a six-month peak on Thursday, dropped 0.8 per cent.

In US equities, the Dow Jones Industrial Average rose 681.9 points, or 3.01 per cent, to 23,368.12, the S&P 500 gained 66.58 points, or 2.72 per cent, to 2,514.47.

The Nasdaq Composite added 218.87 points, or 3.39 per cent, to 6,682.37, reports Reuters.

The pan-European STOXX 600 index jumped 2.67 per cent, while MSCI’s gauge of stocks across the globe gained 2.16 per cent.

Benchmark 10-year Treasury notes last fell 32/32 in price to yield 2.6641 per cent, from 2.553 per cent late on Thursday.

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