Stock prices rise, dollar falls on US jobs data

  • Global stock markets are approaching record highs
  • U.S. non-farm payrolls increase by 850,000 in June
  • Mixed gross after the postponement of the OPEC + meeting
  • Gold rises as dollar retreats after US jobs data

NEW YORK, July 2 (Reuters) – Global stocks rose on Friday, hitting an all-time high thanks to a better-than-expected monthly US jobs report that signaled a strong second-quarter end in the largest economy of the world.

There were weak spots in the jobs report, including a slight increase in the US unemployment rate, and the dollar fell from a three-month high.

Data showed that employment growth in the United States accelerated in June, with the non-farm labor force increasing by 850,000 jobs after increasing by 583,000 in May, despite the unemployment rate reaching 5 , 9% against 5.8% the previous month. Economists polled by Reuters predicted an increase in the wage bill of 700,000 jobs. Read more

The MSCI All Country World Index (.MIWD00000PUS) closed at 725.41, up 0.39% on the day. The pan-European STOXX 600 index (.STOXX) was up 0.26%. On Wall Street, the S&P 500 and the Nasdaq have reached record highs.

Still, there were signs of caution in various corners of the market due to the continued spread of the COVID-19 Delta variant and concerns about a potentially more hawkish Fed. [nL2N2OE1OW]

The US 10-year benchmark yield fell and gold edged up to close the week. GOL

“I think the market is torn between whether to consider the market outlook or the Fed’s reaction,” said Priya Misra, head of global rates strategy at TD Securities in New York.

The Dow Jones Industrial Average (.DJI) gained 152.82 points, or 0.44%, to 34,786.35, the S&P 500 (.SPX) gained 32.4 points, or 0.75%, to 4 352.34 and the Nasdaq Composite (.IXIC) added 116.95 points, or 0.81%, to 14,639.33.

The benchmark 10-year yield fell 3.9 basis points to 1.4407%. Eurozone government bond yields have fallen as investor fears over rising COVID-19 cases outweighed strong US data. The yield on German 10-year bonds, the benchmark for the euro zone, fell to -0.24%, its lowest since mid-June.

The dollar slipped from a three-month high, under pressure from weaker details in the U.S. non-farm payroll report.

Employment in the United States remains about 6.8 million jobs below its peak in February 2020. There is a record 9.3 million job vacancies.

The dollar index lost 0.375 points or 0.4% to 92.222.

The Japanese yen lost 0.39% for the last time, to $ 111.0600.

While the prospects of a strong economic recovery underpin equity markets, investors remain concerned that a strong recovery from the pandemic could push inflation to an uncomfortable level for the Fed.

Former US Treasury Secretary Lawrence Summers said massive US budget spending would trigger inflationary pressures not seen in a generation. Others argue that until wage pressures come back strong, a return to 1970s inflation is unlikely.

Spot gold prices rose $ 4.71 or 0.27% to $ 1,781.31 an ounce.

OPEC + resumed talks on increasing oil production a day after the UAE blocked a deal. The stalemate could delay plans to pump more oil until the end of the year to cool prices that have hit 2.5-year highs. Read more

Oil prices ended the week mixed. Brent crude stabilized at 33 cents, or 0.44%, and US crude stabilized at 7 cents, or 0.09%.

Reporting by Huw Jones in London and Elizabeth Dilts Marshall in New York; edited by Jonathan Oatis, Dan Grebler and David Gregorio

Our standards: Thomson Reuters Trust Principles.

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