World Stocks Rise in Synchrony After U.S. Jobs Report

World Stocks Rise in Synchrony After U.S. Jobs Report

World Stocks Rise in Synchrony After U.S. Jobs Report

Stocks in Europe and Asia climbed to start the week, echoing Friday’s post-jobs report gains on Wall Street.

The Stoxx Europe 600 rose 0.6% in early trading Monday after Asian markets mostly closed higher, while futures pointed to a further 0.2% advance for the S&P 500.

Bank shares led the bounce in Europe as they benefited from a rise in government bond yields.

Yields on 10-year Treasurys rose to 2.920% Monday from 2.895% Friday afternoon, signaling a decline in prices. U.S. government bonds also sold off on Friday after the U.S. employment report showed faster-than-forecast growth in jobs and wages, leading investors to bet the Federal Reserve would pick up the pace on interest rate increases.

Italian lender UniCredit was the best performing European bank Monday, rising 3.6% following a Financial Times report it is pondering a merger with France’s Société Générale. Société Générale denied any merger discussions.

Italy’s broader FTSE MIB Index meanwhile rose 1% and the gap between Italian and German bond yields narrowed modestly after two large antiestablishment parties in Italy struck a deal on a coalition government late last week, decreasing the chance of fresh elections.

Elsewhere, shares of Air France-KLM were up 5.1% after French hotels group AccorHotels said Sunday it is eyeing a minority stake in the airline.

Stocks in Asia were broadly higher as Hong Kong’s Hang Seng and Japan’s Nikkei Stock Average each rose 1.4%. The Nikkei’s climb was its biggest in six weeks as stocks in Japan benefited from a modest decline in the yen. Shares of auto companies rebounded, leading the day’s gains.

The generally upbeat tone in stocks came after U.S. stocks rose sharply Friday, with the S&P 500 recouping its losses for the week amid dimming worries about Italian politics and the upbeat jobs report. Investors appeared to largely brush off intensifying trade tensions on Monday.

Over the weekend, the Trump administration showed no sign of backing down from restrictive tariffs in the face of pushback from allies and China, as finance officials from the Group of Seven leading nations issued a public rebuke of Washington’s new steel and aluminum tariffs.

Beijing separately said it wouldn’t abide by any agreement to buy more U.S. products without assurances that the U.S. wouldn’t go ahead with plans to hit it with tariffs on Chinese imports.

Source: Dow Jones


Create Account

Log In Your Account