Stock markets power ahead on strong US jobs data

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NEW YORK, Dec 7, 2019 (BSS/AFP) – Strong US jobs numbers gave global stock
markets a shot in the arm on Friday, providing fresh evidence for the rude
health of the world’s top economy.

The Labor Department reported that the US economy added 266,000 net new
jobs in November, vastly higher than market expectations of around 190,000,
taking the unemployment rate to 3.5 percent.

In addition, the previous month’s numbers were revised up.

“It’s not only hard to find any weakness but hard to find anything that
isn’t strong,” XTB analyst David Cheetham said of the jobs report which he
called “all around stellar.”

European equity markets promptly extended earlier gains, with some up well
over one percent at the close, as the news of American economic strength
outweighed concerns about a plunge in German October industrial output.
Major US indices gained about one percent, finishing higher for the third
session in a row.

The dollar also powered ahead against the euro and pound.

– OPEC boosts oil prices –

Oil prices, meanwhile, surged after OPEC and its allies — including Russia
— agreed on a production cut of 500,000 barrels per day in addition to their
current agreement.

Oil prices had started the European day soft as doubts about OPEC’s ability
to hammer out a deal on a second day of deliberations crept in after a late
session on Thursday provided no breakthrough.

But then news of the agreed cuts, which will be compounded by voluntary
additional cuts including by OPEC kingpin Saudi Arabia, sent oil futures
flying.

“Oil prices have reversed higher in the wake of the two-day OPEC+ meeting,
which concluded with a pledge of deeper production cuts,” said Charles Schwab
analysts.

“Moreover, although there was some disappointment that the OPEC+ agreement
looks to run only through March, Saudi Arabia’s announcement of cuts beyond
what was agreed to seems to be overshadowing it,” they added.

On the trade front, stock markets appeared more optimistic towards China-US
talks, with investors betting the two will eventually sign a partial deal,
though they remain nervous as next week’s deadline for fresh tariffs draws
closer.

China on Friday offered its latest olive branch, saying it would waive
tariffs on “some” imports of key US soybean and pork imports.

White House economic aide Larry Kudlow told CNBC an agreement “is still
close” and that the two sides talk almost daily.

Among individual companies, Uber Technologies dropped 2.8 percent as it
disclosed that it had tallied nearly 6,000 sexual assaults in the United
States over the past couple of years, including more than 450 cases of rape.

The report comes as the company faces complaints that it is doing too
little to protect passengers. Some analysts said the release of the report
was constructive in that it showed the company was trying to tackle the
problem.

Goldman Sachs gained 3.4 percent following a Bloomberg report that it could
end up paying less than $2 billion to resolve a US criminal probe in its role
in the scandal over 1MDB, a corruption-plagued Malaysian fund. The figure is
below some estimates.

– Key figures around 2130 GMT –

New York – Dow: UP 1.2 percent at 28,015.06 (close)

New York – S&P 500: UP 0.9 percent at 3,145.91 (close)

New York – Nasdaq: UP 1.0 percent at 8,656.53 (close)

London – FTSE 100: UP 1.4 percent at 7,239.66 points (close)

Frankfurt – DAX 30: UP 0.9 percent at 13,166.58 (close)

Paris – CAC 40: UP 1.2 percent at 5,871.91 (close)

EURO STOXX 50: UP 1.2 percent at 3,692.34 (close)

Tokyo – Nikkei 225: UP 0.2 percent at 23,354.40 (close)

Hong Kong – Hang Seng: UP 1.1 percent at 26,498.37 (close)

Shanghai – Composite: UP 0.4 percent at 2,912.01 (close)

Euro/dollar: DOWN at $1.1058 from $1.1104 at 2200 GMT

Pound/dollar: DOWN at $1.3137 from $1.3157

Euro/pound: DOWN at 84.17 pence from 84.40 pence

Dollar/yen: DOWN at 108.56 yen from 108.76 yen

Brent North Sea crude: UP 1.6 percent at $64.39 per barrel

West Texas Intermediate: UP 1.3 percent at $59.20 per barrel