Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Hopes for stimulus drive risky assets higher despite weak U.S. jobs report

12/04/2020 | 04:21pm EST
A man wearing a protective face mask is reflected on a stock quotation board outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo

NEW YORK (Reuters) - Growing prospects for a U.S. coronavirus relief package after a grim employment report helped boost demand for riskier assets on Friday, sending major stock benchmarks to new records and oil prices to their highest since March when widespread lockdowns aimed at curtailing the pandemic took effect.

U.S. Treasury bonds, meanwhile, dipped in anticipation of increased borrowing to fund economic recovery measures.

The U.S. economy added the fewest workers in six months in November, with nonfarm payrolls increasing by 245,000 jobs last month after rising by 610,000 in October, the Labor Department said on Friday. Economists polled by Reuters had forecast payrolls would increase by 469,000 jobs in November.

"It shows that the economy is still not on firm footing and we need stimulus. The revitalized conversations are important, and this shows that ultimately maybe a bad number will get the politicians to push forward a bit faster," said Marvin Loh, senior global macro strategist at State Street Global Markets.

A bipartisan $908 billion coronavirus aid plan gained momentum in the U.S. Congress on Thursday as conservative lawmakers expressed their support.

The hopes for a quicker passage of a stimulus bill helped push global stock benchmarks to record highs. MSCI's gauge of stocks around the globe gained 0.71% following mixed trading in Asia and modest gains in Europe.

On Wall Street, stock indexes reached fresh all-time highs. The Dow Jones Industrial Average rose 248.74 points, or 0.83%, to 30,218.26, the S&P 500 gained 32.4 points, or 0.88%, to 3,699.12 and the Nasdaq Composite added 87.05 points, or 0.7%, to 12,464.23.

The euro touched its highest since April 2018 against the dollar before the greenback slightly rebounded. The dollar index rose 0.153%, inching back from 2-1/2 year lows.

Benchmark U.S. 10-year notes fell 16/32 in price to yield 0.9742%, up from 0.921% late on Thursday.

"November's report is the weakest monthly jobs number of the pandemic rebound, and markets are clearly betting that today's result will pull forward stimulus talks, necessitating greater supply," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.

German industrial orders rose more than expected on the month in October, data showed on Friday, raising hopes the manufacturing sector in Europe's biggest economy started the fourth quarter on a solid footing during a resurgence of the pandemic.

Oil prices got an additional lift after OPEC and Russia agreed to reduce their deep oil output cuts from January by 500,000 barrels per day.

The increase means the Organization of the Petroleum Exporting Countries and Russia, a group known as OPEC+, would move to cut production by 7.2 million barrels per day, or 7% of global demand from January, compared with current cuts of 7.7 million barrels per day.

U.S. crude rose 0.83% to $46.02 per barrel and Brent was at $49.00, up 0.6% on the day.

Spot gold dropped 0.3% to $1,835.46 an ounce. U.S. gold futures fell 0.05% to $1,835.80 an ounce.

(Reporting by David Randall; Additional reporting by Herb Lash and Kate Duguid. Editing by Jonathan Oatis and Will Dunham)

By David Randall


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.57% 30814.26 Delayed Quote.0.68%
EURO / US DOLLAR (EUR/USD) 0.10% 1.208 Delayed Quote.-0.52%
GOLD 0.86% 1826 Delayed Quote.-2.69%
LONDON BRENT OIL -0.60% 54.52 Delayed Quote.9.17%
NASDAQ 100 -0.73% 12803.932503 Delayed Quote.-0.65%
NASDAQ COMP. -0.87% 12998.502287 Delayed Quote.0.86%
S&P 500 -0.72% 3768.25 Delayed Quote.0.32%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.41% 73.6179 Delayed Quote.-0.66%
WTI -0.58% 51.82 Delayed Quote.11.60%
Latest news "Economy & Forex"
05:58pCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China's postal industry sees business volume surge in 2020
PU
05:52pJanet Yellen to say U.S. does not seek weaker dollar, Wall Street Journal reports
RE
05:44pTreasury nominee Janet Yellen to say U.S. does not seek weaker dollar - WSJ
RE
03:35pGitHub apologizes for firing Jewish employee who warned of Nazis in U.S. Capitol -TechCrunch
RE
03:35pSome users report broadcasting problems with CBS, other television service providers
RE
03:26pMSC MEDITERRANEAN SHIPPING : New Zealand's Apple Exporting Season Returns – Get On Board with MSC
PU
02:34pVeolia says that the 29.9% it owns in suez's capital is not and will not be for sale - statement
RE
01:58pFrance reports 16,642 new confirmed covid-19 cases in past 24 hours, from 21,406 on saturday - public health authority
RE
01:56pFrance reports 141 new coronavirus deaths on sunday - health authority
RE
01:49pCoronavirus - france has vaccinated 422,127 people, up from 413,046 0n saturday - bfm tv citing health ministry
RE
Latest news "Economy & Forex"