Tuesday 23 Apr 2024
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NEW YORK  (Nov 8): The dollar slipped and global equity markets were little changed on Friday after the U.S. jobs report for October trailed expectations even while showing solid growth, taking the edge off a months-long rally in both the greenback and stocks.

Employers added 214,000 jobs in October and unemployment fell to a six-year low of 5.8 percent, underscoring the U.S. economy's resilience while the global economy faces slowing demand.

Yields on U.S. Treasuries came off one-month peaks posted shortly before the release of the Labor Department report. The October job gain was below the 231,000 increase forecast by economists polled by Reuters.

Wall Street ended little changed on Friday, though the Dow and the S&P 500 eked out record closing highs and the three major indexes all managed to post gains for the week.

MSCI's all-country world index, a gauge of stock performance in 45 countries, see-sawed around break-even, suggesting equities were poised for further gains.

"It's hard to not bet on the economy, with the fundamentals looking like a full house: earnings are rock solid, we're growing at a nice pace and confidence is up," said David Kelly, chief global strategist for JPMorgan Funds in New York.

"The number was slightly weaker than expected, but until we see real weakness or higher interest rates, we'll continue to be overweight on equities," he said.

Employment gains have now topped the 200,000 mark for nine straight months, the longest stretch since 1994.

The Dow Jones industrial average closed up 19.46 points, or 0.11 percent, to 17,573.93. The S&P 500 rose 0.7 points, or 0.03 percent, to 2,031.91 while the Nasdaq Composite fell 5.94 points, or 0.13 percent, to 4,632.53.

For the week, the Dow rose 1.1 percent, the S&P 500 gained 0.7 percent and the Nasdaq added 0.04 percent.

In Europe, shares lost ground as pessimism over economic growth and loan demand in the region took a toll on bank stocks, while the U.S. jobs data did little to buoy investor sentiment.

European equities had staged a short-lived rally on Thursday after European Central Bank chief Mario Draghi reiterated plans to revive the struggling euro zone by pumping more money into the economy.

The pan-European FTSEurofirst 300 index fell 0.5 percent to close at 1,344.74.

The euro slipped briefly to a 26-month low at $1.2357 before rebounding for a 0.65 percent gain on the day at $1.2453.

Against the yen, the dollar fell 0.55 percent, to 114.57 yen , pulling back from Thursday's seven-year peak of 115.49 yen, according to Thomson Reuters data.

The U.S. dollar index, a measure of the greenback against a basket of currencies, reached a high of 88.19, its highest level since June 2010, before slipping back to 87.570, a loss of 0.5 percent on the day.

Brent crude oil steadied above $83 a barrel, consolidating after several months of sharp falls, as the U.S. jobs data pointed to stronger economic growth and the dollar remained near four-year highs.

Brent settled up 53 cents at $83.39 a barrel. U.S. crude settled up 74 cents at $78.65 a barrel.

The benchmark 10-year Treasury note rose 20/32 in price to yield 2.3047 percent, after hitting a one-month high of 2.407 percent before the jobs data.

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