Jobs report seems to save the day (ISFM) (03-02-2012)

World stock markets began the day cautiously ahead of the monthly U.S. jobs report but turned more optimistic after it was reported better than had been expected, with the number of jobs increasing, while the unemployment rate fell.

In Asia, markets were trading in a close range with Japan South Korea and Australia in negative territory while Hong Kong was marginally higher.  The markets that gained more than others, were those in mainland China, where shares he gained on news of fresh support for the farming and small-business sectors.

Benchmark oil was nearly unchanged at $96 per barrel while among currencies, the euro rose to $1.3148 from $1.3141 late Thursday in New York. The dollar rose to 76.18 yen from 76.16 yen.

After declining for most of the day, European stock markets jumped on the better-than-expected January jobs data from the U.S., which showed strong improvement in the labor market.  With regards to the region’s debt problems, specifically those of Greece, negotiations are ongoing between the country and its private creditors to write down debt.  Most believe that even if the private sector involvement issue is resolved, implementation of the austerity measure is doubtful.

On Wall Street, U.S. stock-index futures shot higher after the government reported the unemployment rate unexpectedly fell in January surpassing economists’ expectations and Treasurys plunged, while the dollar also turned lower.

Source: ISFM