Stocks Buoyed by Strong U.S. Jobs Report
December 07 2015 - 04:30AM
Dow Jones News
Global stocks started the week with gains after Friday's strong
U.S. jobs report boosted confidence in the world's largest economy
and heightened expectations that the Federal Reserve would raise
interest rates in December.
The Stoxx Europe 600 was up 0.8% in early trade, rebounding from
sharp losses late last week. European stocks had tumbled Thursday
and Friday after the European Central Bank announced less
aggressive stimulus measures than markets had expected.
Last week's losses "reflected a massive overreaction" to ECB
policy, said Ben Kumar, investment manager at Seven Investment
Management.
On Friday, ECB President Mario Draghi sought to reassure
investors that the central bank would "no doubt" step up stimulus
measures if needed.
Stocks also got a boost from Friday's sharp rally on Wall
Street, where major indexes bounced back as a
stronger-than-expected U.S. jobs report helped to coalesce
sentiment about the Fed's plans to start raising rates at its Dec.
15-16 meeting.
The Dow industrials rose 2.1% to cap a tumultuous week, pushing
the index back into positive territory for the year.
"I think everyone believes payrolls data Friday was the last
thing that could change the Fed's mind," Mr. Kumar said. "We're all
set for a rate rise."
Japan's Nikkei-225 Stock Average joined the rally on Monday to
close 1% higher.
Still, concerns about Chinese data due later in the week and a
fall in energy stocks kept a lid on gains in Asia. Australia's
S&P/ASX 200 ended 0.1% higher and the Shanghai Composite added
0.3%.
In commodities, Brent crude was down 0.3% at $42.90 a barrel.
The Organization of the Petroleum Exporting Countries on Friday
ended a meeting without an agreement to restrain production,
weighing on oil prices.
Gold was slightly higher at $1,084 an ounce.
In currencies, the euro was down 0.2% against the dollar at
$1.0860, while the dollar was up 0.1% against the yen at ¥
123.27.
In equity markets, gains in Europe were led by the health-care
sector, with Roche Holding AG up 1.2% and Novo Nordisk up 1.6%.
Oil and gas shares dragged on broader gains. BP PLC was down
1.9%, Royal Dutch Shell PLC was down 1.7% and Total SA was down
1.4%.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
December 07, 2015 04:15 ET (09:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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