October 1, 2014
Stocks rally after US jobs report; dollar slips
Global equity markets surged as investors set aside any fear of economic softness in a weak US jobs report, while bond yields and the dollar fell as the data showed employers hired far fewer workers than expected in January.
On Wall Street, the Dow Jones industrial average rose 144.46 points, or 0.92 percent, to 15,772.99.
The S&P 500 gained 20.67 points, or 1.17 percent, to 1,794.1 and the Nasdaq Composite added 63.331 points, or 1.56 percent, to 4,120.452.
The dollar index fell 0.26 percent to 80.694, as the euro gained 0.29 percent to 1.3628 against the greenback.
The dollar rose 0.24 percent to 102.33 against the yen. The benchmark 10-year US Treasury note rose 7/32 in price, pushing its yield down to 2.6765 percent.
The pan-European FTSEurofirst 300 index of leading shares closed up 0.75 percent to 1,300.11, helped by steelmaker Arcelor, as investors bet equities would continue to benefit from the region's gradual economic rebound. Arcelor rose 0.81 percent to 12.495.
German Bund futures settled up 50 ticks at 143.83, retreating from earlier highs of 144.02, while cash 10-year yields on government debt fell to 1.66 percent.
Oil rose by more than $1 to one-month highs, fueled by a sharp rally in gasoline and heating oil as supplies tightened and refiners started to shut down plants for maintenance.
Brent crude oil futures rose $2.20 to $109.39 a barrel. US crude settled up $2.04 to $99.88 a barrel.
Non-farm payrolls rose by 113,000, well below the consensus of 185,000, although the unemployment rate hit a five-year low of 6.6 percent, the US Labor Department said.
The dollar fell broadly as safe-haven gold and US government debt prices rose on the unemployment report.
Equities also rose, with investors writing off the weakest two months of US job growth in three years on inclement weather.
The household survey from which the jobless rate is derived also found strong gains in employment and an increase in the number of people in the labor force, helping offset concerns about a potential soft patch in the economy.