(Corrects Dec payrolls gain for revision in paragraph 7 and
date of GDP publication in paragraph 8)
* U.S. nonfarm payrolls up 157,000 in January
* U.S. and European stocks get a lift, MSCI world index
* U.S. dollar dips against euro to $1.3658
NEW YORK, Feb 1 U.S. and European stocks gained
and the U.S. dollar extended its decline against the euro on
Friday after data showed U.S. payrolls grew modestly in January
and that gains in the previous two months were bigger than
The euro's rise to a fresh 14-month high against the dollar
came on rising risk tolerance after the jobs data. But the
dollar was already under pressure with after the U.S. Central
Bank earlier this week said it will maintain its bond-buying and
loose monetary policies.
The MSCI world equity index was up 0.4
percent, having strengthened earlier on factory activity surveys
for January in China and the euro zone, which increased optimism
over the global growth outlook.
"The combination of stronger-than-expected job growth,
combined with an unemployment rate that suggests the Fed will
remain in stimulus mode, should be received well by the equity
market," said Todd Salamone, director of research at Schaeffer's
Investment Research in Cincinnati, Ohio.
The Dow Jones industrial average was up 84.14 points,
or 0.61 percent, at 13,944.72. The Standard & Poor's 500 Index
was up 7.89 points, or 0.53 percent, at 1,506.00. The
Nasdaq Composite Index was up 16.56 points, or 0.53
percent, at 3,158.70.
The FTSEurofirst 300 was up 0.5 percent at
American employers added 157,000 new jobs to their payrolls
in January, down from a gain of 196,000 in December after the
prior month was revised up from a gain of 155,000. There were
127,000 more jobs created in November and December than
The jobs growth figures soothed some of the concerns about
the outlook for the U.S. economy after disappointing fourth
quarter GDP figures were released on Wednesday.
The euro was last up 0.1 percent at $1.3600 with the
session peak at $1.3674.
A separate report showed U.S. consumer sentiment
unexpectedly improved in January as Americans felt Washington's
deal to avert the "fiscal cliff" at the beginning of the year
boded well for the economy.
In other data, the pace of growth in the U.S. manufacturing
sector picked up in January to its highest level in nine months
as new orders and employment improved, according to an industry
report released on Friday.
The Institute for Supply Management (ISM) said its index of
national factory activity rose to 53.1 from 50.2 in December,
beating economists' expectations of 50.6.
It was the highest level since April of last year. A source
of strength for the economy in the early years of the recovery,
the manufacturing sector lost some steam in the second half of
last year and contracted in November in the wake of superstorm
German Bund futures edged higher to last trade 44
ticks up on the day at 142.33.
The benchmark 10-year U.S. Treasury note was up
13/32, with the yield at 1.9368 percent.
(Reporting By Nick Olivari; editing by Clive McKeef)