Oct 6, 2014 5:24 AM
Global stocks higher after US jobs data
The Associated Press
SEOUL, South Korea (AP) Global markets were mostly higher on Monday on strong U.S. jobs data but some Asian markets were lower as investors looked to the U.S. Federal Reserve for signs of when it might raise interest rates.
KEEPING SCORE: Britain's FTSE 100 rose 0.4 percent to 6,555.94 and Germany's DAX advanced 1.2 percent to 9,309.37. France's CAC 40 added 0.4 percent to 4,298.23. Futures augured another cheerful day for U.S. stocks, with futures for the Dow Jones industrial average and the Standard & Poor's 500 up 0.4 percent.
ASIA'S DAY: Japan and Hong Kong rose but the rest of Asia was subdued. Tokyo's Nikkei 225 rose 1.2 percent to 15,890.95 and Hong Kong's Hang Seng index jumped 1.1 percent to 23,315.04. South Korea's Kospi dipped 0.4 percent to 1,968.39 and Australia's S&P/ASX 200 lost 0.5 percent to 5,292.90. Markets in mainland China were closed for a holiday.
US HIRES MORE, PAY FLAT: Government data showed employers added 248,000 jobs in September, beating market expectations. Unemployment fell to a six-year low of 5.9 percent. The Labor Department said hiring in July and August also was stronger than initially estimated. But average hourly wages fell a penny last month. Lack of wage inflation might prompt the Fed to delay raising interest rates from near zero. Many economists expect the Fed to put off a rate hike until mid-2015.
LOWER GERMAN DATA: German factory orders dropped 5.7 percent in August from the previous month, worse than the 2.5 percent drop forecast. Analysts blamed a decline in demand from Eurozone markets and uncertainty over Ukraine and the Middle East.
EUROPE SILENT ON STIMULUS: After a meeting of European Central Bank leaders last week, bank president Mario Draghi said Europe's recovery is "weak, fragile, and uneven." But Draghi disappointed markets by failing to put a figure on the size of a planned stimulus.
ANALYST'S TAKE: "On Friday, the U.S. once again showed that it is the best house on what seems to be a slowly deteriorating neighborhood," said Chris Weston, chief market strategist at IG Markets. "While Europe is sinking into a stagflation hole, money managers are seeing qualities in the U.S. that stand out by a country mile right now."
WEEK AHEAD: The Fed is due to release minutes on Wednesday of a meeting last month. Investors will be watching for clues about a timetable for rate hikes and discussion surrounding the decision to keep the "considerable time" phrase in its pledge to keep interest rates near zero. Markets will be particularly attentive to signs of "increased hawkishness," said S bastien Barb of Cr dit Agricole.
ENERGY: Benchmark U.S. crude added 26 cents to $90.00. On Friday, the contract lost $1.26 to settle at an 18-month low of $89.74 per a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, was up 49 cents to $92.80.
CURRENCIES: The dollar fell to 109.40 yen from Friday's 109.80. The euro inched up to $1.254 from $1.252.