April 21, 2014
Dollar, stocks rise as US jobs data boosts taper talk
Global equity markets surged and the dollar rose against the yen after stronger-than-expected US jobs data gave investors confidence the economy is strong enough to withstand an expected reduction in Federal Reserve stimulus.
A total of 203,000 jobs were added in November, beating expectations for 180,000, while the unemployment rate dropped three-tenths of a percentage point to a five-year low of 7 percent.
The dollar jumped to session highs against the yen and stocks on Wall Street surged, with the Nasdaq setting a record intraday high for the year and the Dow and S&P rising more than 1 percent.
The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.05 percent to 80.277.
Against the yen, the dollar was last up 1.06 percent at 102.86 yen. The dollar's gains versus the euro were short-lived, as the euro zone common currency was boosted by rising short-term interest rates a day after the European Central Bank dampened hopes for an imminent easing move.
The euro was up 0.25 percent against the dollar to $1.3701.
Other data also was bullish for stocks. Consumer spending increased 0.3 percent in October, or one-tenth of a percentage point more than expected, after rising 0.2 percent in September.
MSCI's all-country world equity index, which tracks shares in 45 nations, rose 0.81 percent, while the pan-European FTSEurofirst 300 index gained 0.72 percent to close at 1,270.38.
The Dow Jones industrial average rose 198.69 points, or 1.26 percent, to 16,020.2. The S&P 500 gained 20.06 points, or 1.12 percent, to 1,805.09 and the Nasdaq Composite added 29.356 points, or 0.73 percent, to 4,062.521.
U.S. Treasury yields, a benchmark for borrowing costs around the world, briefly climbed above 2.9 percent, and later the 10-year note was up 2/32 in price to yield 2.8553 percent.
Bund futures settled up 22 ticks at 140.11 euros.
US gold futures for February delivery underperformed spot prices, to settle down $2.90 at $1,229.
Brent crude settled up 0.63 percent at $111.61 a barrel. US crude settled up 27 cents at $97.65 a barrel.