November 1, 2012 / 8:45 PM / in 5 years

GLOBAL MARKETS-Stocks up on US, China data; US crude rises

* Data on China's factories, U.S. jobs boost global equities
    * U.S. Treasuries lower a day before monthly U.S. payrolls
    * U.S. crude helped by data, Brent falls on demand fears
after Sandy
    * Euro surrenders gains after Greek court ruling on pension

    By Herbert Lash
    NEW YORK, Nov 1 (Reuters) - Global stocks gained on Thursday
on an improving U.S. jobs picture and data that showed China's
economy regaining some traction, while U.S. crude futures were
supported by the economic news and potential storm-related
supply disruptions. 
    Widespread power outages and navigational hazards caused by
Hurricane Sandy continued to threaten fuel and crude oil
deliveries around New York City,  including the harbor delivery
point on which New York Mercantile Exchange fuel futures
contracts are based. 
    Payrolls processor ADP reported that private employers added
jobs in October at the fastest pace in eight months, a sign of
modest healing in the U.S. labor market. 
    Other data showed a sharp improvement in consumer confidence
even as the ADP reading did not change the view that the jobs
market still faces a long slog back to health. 
    A drop in new claims for jobless benefits last week helped
lift sentiment ahead of nonfarm payrolls due o n F riday, and
there were mixed signals about the health of U.S. manufacturing.
    Still, there was renewed optimism about China, the world's
growth engine, after official and private-sector factory surveys
marked gains. China's official Purchasing Managers Index for
October showed rising factory activity for the first time since
    "There is a general trend of things getting more positive,
which should help stocks and the economy at large going
forward," said Bruce McCain, chief investment strategist at Key
Private Bank in Cleveland.
    U.S. stocks advanced in a broad rally, with the three major
gauges of activity on Wall Street rising more than 1 percent.
The benchmark S&P 500 scored its best day in seven weeks.
    The Dow Jones industrial average closed up 136.16
points, or 1.04 percent, at 13,232.62. The Standard & Poor's 500
Index rose 15.43 points, or 1.09 percent, at 1,427.59.
The Nasdaq Composite Index added 42.83 points, or 1.44
percent, at 3,020.06.
    In Europe, the FTSE Eurofirst index of top European
shares closed up 1.2 percent at 1,109.99. 
    The pick-up in Chinese activity increased the appetite for
European automakers, with the one sector index up 1.74
percent and BMW up 3 percent.
    MSCI's all-country world equity index gained
0.8 percent to 331.85.
    U.S. Treasuries prices fell on news of the Chinese PMI
manufacturing surveys, while China's central bank also conducted
its largest-ever net fund injection this week.
    The central bank's move signaled its intention to keep money
market conditions relatively loose and support lending to the
real economy before a once-in-a-decade political transition,
starting on Nov. 8 at the 18th Party Congress.
    "The main reason Treasuries were down is that the Chinese
central bank continues to inject record levels of liquidity into
the market and the China PMI was better than expected," said
Steven Van Order, fixed-income strategist at Calvert Investment
Management in Bethesda, Maryland.
    The benchmark 10-year U.S. Treasury note was
down 8/32 in price to yield 1.7207 percent. 
    The euro surrendered gains against the dollar after a Greek
court ruled the country's pension reform demanded by foreign
lenders may be unconstitutional, stoking worries about Athens'
ability to implement austerity measures needed to secure aid.
    The euro was down 0.15 percent at $1.2939. 
    U.S. crude inventories fell 2.05 million barrels, instead of
the expected build of 1.5 million barrels, the U.S. Energy
Information Administration said in its weekly report, which was
delayed a day because of Sandy. 
    "We saw that draw on crude and that helped put a bid in the
market. I think the market found some support earlier from the
employment number that had come out and the consumer confidence
numbers," said Gene McGillian, analyst at Tradition Energy in
Stamford, Connecticut.
    The destruction wrought by the storm affected millions of
people across the eastern United States and could dampen fuel
demand just as the world's largest economy was showing signs of
recovery, analysts said.
    U.S. December crude rose 85 cents to settle at $87.09 a
barrel. In London, the Brent crude contract for December fell 53
cents to settle at $108.17 a barrel.
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