Jobs data helps stocks, credit markets jittery
Investors swooped back into world stocks after a mildly encouraging US jobs report dulled fears of recession for now, although credit markets faced strains similar to those that preceded the 2008 credit crisis.
US stocks rallied more than 4 percent, picking up steam late in the day and recovering the previous day's losses. Shares have whip-sawed throughout the week and the broad S&P 500 is down about 14 percent from its 2011 closing high set on April 29.
The Dow Jones industrial average gained 423.37 points, or 3.95 percent, at 11,143.31. The Standard & Poor's 500 Index was up 51.88 points, or 4.63 percent, at 1,172.64. The Nasdaq Composite Index was up 111.63 points, or 4.69 percent, at 2,492.68.European shares pared losses following news that French President Nicolas Sarkozy is to meet Germany's Angela Merkel next week.
After another rollercoaster session, fuelled by rumours about French banks, sovereign debt, and a possible short-selling ban in Europe, Britain's leading share index ended with triple-digit gains on Thursday.
The FTSE 100 index closed up 155.67 points, or 3.1 percent, at 5,162.83, having swung sharply through over 230 points between a session high of 5,172.6 and low of 4,943.01.
The Nikkei average resumed falling following a rebound the day before, after rumours about the health of French banks re-ignited concerns over the euro zone's debt crisis, but declines were limited by a rise in US stock futures. The benchmark Nikkei average closed down 0.6 percent at 8,981.94, while the broader Topix shed 0.8 percent to 770.88. The indexes trimmed initial losses after US stocks futures climbed 1.5 percent.
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