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GLOBAL MARKETS-Stocks rise after strong U.S. jobs data; COVID-19 caution lingers

Published 03/07/2020, 02:29 am
Updated 03/07/2020, 02:30 am
© Reuters.
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* MSCI world stocks index rises for 4th day

* Copper at 6-month highs on supply fears

* USD index little changed; euro and yen dip

(Updates prices, changes comment, byline, dateline; previous LONDON)

By Rodrigo Campos

NEW YORK, July 2 (Reuters) - World stocks rose for a fourth straight day on Thursday after U.S. payrolls increased by a record 4.8 million in June, but the dollar and Treasury debt prices also edged up, which suggested lingering concern about rising COVID-19 cases in many U.S. states.

New cases shot up by nearly 50,000 in the United States on Wednesday, according to a Reuters tally, marking the biggest one-day spike since the start of the pandemic. states, along with some other parts of the world, are reversing or pausing reopenings to tackle a recent surge in infections, leaving analysts worried about another selloff in financial markets if the damage mounts.

June's job survey was taken just as the spike in COVID-19 cases started to accelerate.

"The strong rebound would normally be an unambiguously positive sign that a recovery is under way (but) it is being accompanied by a sharp rise in new infections, which was what caused the collapse in the first place," said Mike Bell, global market strategist at JP Morgan Asset Management in London.

"It is therefore too soon to say for certain that this recovery in employment sounds the all-clear for investors."

The Dow Jones Industrial Average .DJI rose 226.33 points, or 0.88%, to 25,961.3, the S&P 500 .SPX gained 27.43 points, or 0.88%, to 3,143.29 and the Nasdaq Composite .IXIC added 104.17 points, or 1.03%, to 10,258.79.

The pan-European STOXX 600 index .STOXX rose 1.97% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.19%. Emerging market stocks rose 2.29%.

Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 2.32% higher, while Japan's Nikkei .N225 rose 0.11%.

Oil futures prices rose, supported by the U.S. employment numbers and Wednesday's drawdown in crude inventories, but the spike in U.S. coronavirus infections fanned concerns that economic activity will weaken in coming weeks. O/R

U.S. crude CLc1 was up 1.03% to $40.23 per barrel and Brent LCOc1 was at $42.61, up 1.38% on the day.

Treasury yields ticked lower despite the strong jobs data.

Benchmark 10-year notes US10YT=RR last rose 3/32 in price to yield 0.6726%, from 0.682% late on Wednesday.

The 30-year bond US30YT=RR last rose 1/32 in price to yield 1.4332%, from 1.434%.

In currencies, the dollar softened after the payroll numbers but trickled up to positive territory mid-morning in New York, and has remained little changed since.

The dollar index =USD rose 0.163%, with the euro EUR= down 0.21% to $1.1226.

The Japanese yen weakened 0.09% versus the greenback to 107.59 per dollar, while Sterling GBP= was last trading at $1.2459, down 0.09% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Financial markets battle rise of COVID-19

https://tmsnrt.rs/2YUS3C6

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