Oct 6, 2014 7:30 AM
Global stocks remain supported by US jobs data
The Associated Press
SEOUL, South Korea (AP) Global markets were mostly higher on Monday as investors continued to draw confidence from upbeat U.S. jobs data from last week.
KEEPING SCORE: Britain's FTSE 100 rose 0.4 percent to 6,555.12 and Germany's DAX advanced 0.9 percent to 9,279.16. France's CAC 40 added 0.3 percent to 4,292.70. Futures augured another cheerful day for U.S. stocks, with futures for the Dow Jones industrial average and the Standard & Poor's 500 up 0.3 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 on Friday 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: Trading sentiment in Europe was not affected by another weak economic report. German factory orders dropped 5.7 percent in August from the previous month, worse than the 2.5 percent drop forecast. Analysts blamed weak demand from eurozone markets and uncertainty over Ukraine and the Middle East. Investors, however, remain focused on the U.S. recovery and the stimulus being offered by the European Central Bank.
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 Sebastien Barbe of Credit Agricole.
ENERGY: Benchmark U.S. crude fell $1.30 to $89.70. 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.
CURRENCIES: The dollar fell to 109.35 yen from Friday's 109.80. The euro inched up to $1.2558 from $1.2520.