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GLOBAL MARKETS-Stocks, dollar gain after strong U.S. job growth data

Published 09/12/2017, 03:32 am
Updated 09/12/2017, 03:40 am
© Reuters.  GLOBAL MARKETS-Stocks, dollar gain after strong U.S. job growth data
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* European stocks rally on Brexit talk breakthrough

* After dramatic gains, bitcoin tumbles 20 pct in 10 hours

* Oil gains on Chinese demand, but weekly losses loom

* Dollar index on pace for fifth session of gains (Updates with opening of U.S. markets; changes dateline from London)

By Lewis Krauskopf

NEW YORK, Dec 8 (Reuters) - Wall Street and other major global stock markets rose on Friday and the U.S. dollar was on pace for its fifth day of gains after data showed robust U.S. job growth.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.82 percent, supported by news that Britain and the European Union had a breakthrough in Brexit negotiations. jobs grew at a strong clip in November, even though wage gains remain moderate, suggesting to some investors that inflation is relatively low. U.S. jobs report followed encouraging economic data from China and Japan that buoyed Asian shares. have a continuation of an economy that has been pretty firm and pretty balanced for the better part of the last several years and that's been good for stock prices," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah.

"What we are seeing are yields under control and stocks doing well, but the report was strong enough to suggest a bit of a bump in the dollar," Ware said.

The Dow Jones Industrial Average .DJI rose 60.02 points, or 0.25 percent, to 24,271.5, the S&P 500 .SPX gained 10.37 points, or 0.39 percent, to 2,647.35 and the Nasdaq Composite .IXIC added 45.54 points, or 0.67 percent, to 6,858.38.

The S&P technology sector .SPLRCT rose 0.7 percent, continuing a rebound from the high flying sector's recent retreat.

MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.46 percent.

Investors also are continuing to watch a U.S. tax bill moving through Congress that will slash corporate levies, and may have been somewhat relieved that U.S. lawmakers late on Thursday agreed to a temporary funding bill that averted a government shutdown. Europe, the banks index .SX7P jumped 2.3 percent after financial regulators reached a long-sought deal on Thursday to harmonize global banking rules. dollar rose against the euro and yen in choppy trading after the U.S. jobs data, but gains were capped by wages data that analysts said were disappointing. dollar index .DXY rose 0.22 percent, with the euro EUR= down 0.16 percent to $1.1752.

"The wages data reinforces the belief that inflationary pressures remain well-contained, keeping the Federal Reserve's monetary tightening plans in check," said Karl Schamotta, director of global product and market strategy at Cambridge Global Payments in Toronto.

The U.S. Federal Reserve is widely expected to raise interest rates at its Dec. 12-13 policy meeting, but Friday's jobs report could shape debate on monetary policy next year.

Bitcoin lost almost a fifth of its value in 10 hours on Friday, having surged more than 40 percent in the preceding 48 hours, sparking fears the market may be heading for a price collapse. Treasury yields were little changed after the closely watched jobs report. 10-year notes US10YT=RR last fell 2/32 in price to yield 2.3814 percent, from 2.376 percent late on Thursday.

Oil prices edged up, helped by rising Chinese crude demand and threats of a strike in Africa's largest oil exporter. crude CLcv1 rose 1.27 percent to $57.41 per barrel and Brent LCOcv1 was last at $63.22, up 1.64 percent on the day.

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