Global stocks rise ahead of closely watched US recruitment data

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A forex trader observes computer monitors near the screens displaying exchange rates in a forex trading room in Seoul, South Korea, on Thursday, October 7, 2021. Asian stocks rose Thursday, following a rally on Wall Street. (AP Photo / Lee Jin-man)

AP

Global stock markets surged as investors waited Friday for US employment data that could influence a Federal Reserve decision on when to withdraw incentives after lawmakers averted a possible sovereign default.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong have advanced. Wall Street futures are advanced.

Investors want to see if the September hiring of U.S. employees was strong enough for Fed officials debating when to withdraw bond purchases and other incentives that boost stock prices, but say they want a healthy job market .

Labor Department data on Friday “will determine in the minds of markets whether the start of the Fed cut in December is a done deal,” Oanda’s Jeffrey Halley said in a report.

In early trading, the FTSE 100 in London rose 1.7% to 7,079.73, while the Frankfurt DAX lost 0.3% to 15,208.73. The CAC 40 in Paris lost 0.2% to 6,586.79.

On Wall Street, the future for the benchmark index S&P 500 lost less than 0.1%. The future for the Dow Jones Industrial Average rose less than 0.1%.

On Thursday, the S&P 500 rose 0.8% while the Dow rose 1% after US lawmakers agreed to extend Washington’s borrowing capacity into December. The lack of an agreement could have resulted in a failure, experts say it would set back a recovery from the coronavirus pandemic.

Despite this ceasefire, “concerns about US funding for your government are far from gone,” Mizuho Bank’s Venkateswaran Lavanya said in a report.

Previously, the S&P 500 fluctuated between gains and losses of more than 1% for four days on fear of the debt war.

In Asia, the Shanghai Composite Index rose 0.7% to 3,592.17 after Chinese markets reopened after a five-day holiday. The Nikkei 225 in Tokyo rose 1.3% to 28,048.94 and the Hang Seng in Hong Kong lost 0.6% to 24,837.35.

The Kospi in Seoul lost 0.1% to 2,956.30, while the ASX-S&P 200 from Sydney gained 0.9% to 7,320.10. India’s Sensex rose 0.7% to 60,075.91. New Zealand fell while Southeast Asian markets rose.

On Thursday, the Ministry of Labor reported that the number of unemployed had decreased over the past week.

Previously, Fed officials reacted to a surge in inflation by saying they wanted to make sure a recovery occurs before taking off the stimulus. More employment could put pressure on prices to rise faster, which could lead to investor worries as the Fed and other central banks remove the incentives that have been driving stock prices higher.

In the energy markets, the US crude oil index in electronic trading on the New York Mercantile Exchange rose by $ 1.21 to $ 79.51 per barrel. The contract rose 87 cents on Thursday to $ 78.30. Brent crude, the price base for international oils, rose $ 1.24 a barrel in London to $ 83.19. It added 87 cents to $ 81.95 on the previous session.

The dollar rose to 111.95 yen from 111.63 yen on Thursday. The euro rose from $ 1.1550 to $ 1.1554.


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