June 6, 2014 / 1:31 PM / in 4 years

GLOBAL MARKETS-Shares extend gains after U.S. jobs report, bonds rise

* Shares rise as U.S. jobs report brightens economy's
    * European markets buoyed by ECB's action on Thursday
    * Low-rated euro zone bond yields hit record lows

 (Adds fresh prices after U.S. jobs reports)
    By Herbert Lash
    LONDON, June 6 (Reuters) - Global equity markets rose and
bond yields fell on Friday after a solid U.S. jobs report showed
a recovering economy and added to an already buoyant market
lifted by the European Central Bank's pledge to douse potential
deflation with bundles of cash.
    U.S. equity futures rose and European stock indexes extended
gains after the nonfarm payrolls report showed U.S. employers
maintained a solid pace of hiring in May, returning employment
to its pre-recession level.
    The U.S. economy has recouped the 8.7 million jobs lost
during the recession, adding just under 217,000 jobs in May,
while the unemployment rate held steady at 6.3 percent, the
Labor Department said.
    "This number is not a surprise and should be a rallying cry
for the bulls. There's no shock on either side of the tape, but
it supports the historical norm of the second quarter typically
being the best of the year," said Todd Schoenberger, managing
partner at Landcolt Capital in New York.
    The FTSEurofirst 300 index of top European shares
extended gains, rising 0.43 percent to 1,380.21 points. 
    U.S. stock index futures pointed to a higher open. S&P 500
futures rose 4 points, or 0.21 percent. Dow Jones
industrial average futures added 50 points and Nasdaq 100
futures rose 13.75 points.
    U.S. Treasuries prices gained and German bund futures
 hit session highs of 145.99 after the U.S. jobs data,
up 98 ticks on the day. 
    Benchmark 10-year notes were last up 9/32 in
price to yield 2.5518 percent.
    The euro gyrated in a narrow range, trading flat to slightly
lower versus the U.S. dollar. The euro was last down 0.05
percent at $1.3651.
    Brent rose 19 cents to $108.98 a barrel. U.S. crude
 was at $102.92 a barrel, up 44 cents.
    Markets were buoyed after the ECB on Thursday cut interest
rates, including taking deposit rates for banks below zero, and
pledged hundreds of billions more euros of cheap funds for
    The ECB refrained from following the U.S., Japanese and
British central banks in pursuing outright bond-buying. But its
president, Mario Draghi, did not rule it out in the future,
saying, "We aren't finished here." 

 (Reporting by Herbert Lash; Editing by Meredith Mazzilli)
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