Global Stocks Higher on US Hiring, Oil 10/06 05:09
Global stock markets advanced Thursday after strong U.S. hiring dampened
hopes the Federal Reserve might ease off plans for interest rate hikes and the
OPEC group of oil exporters agreed to output cuts to shore up prices.
BEIJING (AP) -- Global stock markets advanced Thursday after strong U.S.
hiring dampened hopes the Federal Reserve might ease off plans for interest
rate hikes and the OPEC group of oil exporters agreed to output cuts to shore
London, Frankfurt and Tokyo gained. Hong Kong declined. Mainland Chinese
markets were closed for a holiday.
Oil prices rose. The euro edged higher but stayed below $1.
Wall Street futures edged lower after U.S. stocks fell Wednesday following a
report by payroll processor ADP that employers added 208,000 jobs in September.
That showed parts of the economy are still strong, giving ammunition to Fed
officials who say more rate hikes are needed to cool inflation that is at a
"The economy is too strong for the Fed to pivot. The strong start to October
is over," said Edward Moya of Oanda in a report.
In early trading, London's FTSE 100 was up less than 0.1% at 7,059.11. The
DAX in Frankfurt gained 0.7% to 12,610.37 and the CAC 40 in Paris added 0.4% to
On Wall Street, the future for the benchmark S&P 500 index was down 0.2%.
That for the Dow Jones Industrial Average lost 0.1%.
In Asia, Tokyo's Nikkei 225 rose 0.7% to 27,311.30 while the Hang Seng in
Hong Kong lost 0.4% to 18,012.15.
The Kospi in Seoul surged 1% to 2,237.86 while Sydney's S&P ASX 200 loss
less than 0.1% to 6,817.50.
New Zealand declined while Southeast Asian markets gained.
On Wednesday, the S&P 500 lost 0.2%. The benchmark was coming off its
strongest two-day rally in 2 1/2 years.
The Dow slipped 0.1% and the Nasdaq composite slid 0.2%.
Investors hope data that show the economy weakening will persuade the Fed
and central banks in Europe and Asia to ease off rate hikes. They worry
aggressive action to cool inflation might tip the global economy into
recession, but forecasters say hopes central bankers will relent might be
Wall Street is waiting for corporate results that will show how inflation is
affecting businesses and consumers' willingness to spend.
Fed officials say they are determined to keep raising interest rates and
hold them at an elevated level until it is clear inflation has subsided.
Traders get another update on U.S. employment when the government releases
its official jobs count on Friday.
In energy markets, benchmark U.S. crude rose 74 cents to $88.50 per barrel
in electronic trading on the New York Mercantile Exchange.
It gained $1.24 on Wednesday to $87.76 per barrel after energy ministers
from Saudi Arabia and other members of the Organization of Petroleum Exporting
Countries agreed to production cuts to shore up sagging prices.
Oil surged to above $110 per barrel following Russia's February attack on
Ukraine but has fallen back. The decision to support prices might help Moscow
maintain its income once Europe's decision to cut purchases of Russian crude as
punishment for the war on Ukraine takes effect in December.
White House press secretary Karine Jean-Pierre accused OPEC of "aligning
Brent crude, the price basis for international oil trading, added 88 cents
per barrel to $94.25 in London. It advanced $1.57 the previous session to
The dollar rose to 144.63 yen from Wednesday's 144.49 yen. The euro gained
to 98.96 cents from 98.94 cents.