Strong U.S. jobs data boosts dollar, stocks
New York (Oct 3) The dollar climbed to a more than four-year peak and global equity markets rose on Friday after data showed U.S. employers stepped up hiring in September and the jobless rate fell to a six-year low, further signs of a relatively strong economy.
The strong dollar helped pushed gold below $1,200 an ounce for the first time this year after a Labor Department report showed U.S. nonfarm payrolls rose by 248,000 last month and the jobless rate fell two-tenths of a point to 5.9 percent.
The better-than-expected report led the euro to fall to a
more than two-year low against the dollar, which hit a 15-month
high against the Swiss franc. The dollar index of six
major currencies was on track for its biggest yearly gain in
Stocks in Europe and on Wall Street rose about 0.8 percent,
and Treasuries yields, which move inversely to prices, also
"Overall it's a positive report for the dollar and points to
continued growth and recovery in the U.S.," said Sireen Haraji,
currency strategist at Mizuho Corporate Bank in New York.
In the interest rate futures market, however, traders
boosted bets the Federal Reserve could raise rates slightly
earlier next year than anticipated. Rate futures contracts show
traders are betting the first Fed rate hike will come in July
2015, based on CME FedWatch, which tracks rate hike expectations
using its fed funds futures contracts.
The dollar index hit a high of 86.746, its strongest
since June 2010, and was last up 1.27 percent at 86.691.
The greenback jumped 1.32 percent to 109.74 yen,
while the euro slid 1.27 percent to $1.2507.
MSCI's all-country world index of stock
performance in 45 countries rose 0.31 percent, held back by
sluggish emerging markets.
The FTSEurofirst 300 index of top European shares
rose 0.89 percent at 1,347.02.
On Wall Street, the Dow Jones industrial average
added 140.4 points, or 0.84 percent, to 16,941.45. The S&P 500
gained 17.99 points, or 0.92 percent, to 1,964.16 and the
Nasdaq Composite rose 52.86 points, or 1.19 percent, to
Treasuries prices fell. The 10-year Treasury note
fell 8/32 in price to yield 2.4646 percent.
Brent crude oil futures fell below $92 a barrel, down for a
fourth consecutive day in a slide that has pushed prices to
their lowest since 2012. Abundant supplies and a strong dollar
continue to weigh on the market.
Brent for November delivery was down $1.57 at $91.85
a barrel. U.S. November crude slipped $1.29 to $90.72.