Strong jobs and productivity data lift markets (ISFM) (02-02-2012)

Stock markets started the day trading flat after the previous session’s gains, but took heart from data reported, which put markets strongly in positive territory, as investors awaited U.S. jobs data due to be published tomorrow.

Asian markets advanced on commodity and financial stocks following the improvement in manufacturing data which helped raise global markets. Australian stocks reversed a three-day losing streak, at China's benchmark Shanghai Composite Index climbed 2 percent to 2,312.56 on news that manufacturing improved in January for a second straight month.

On the other hand, oil prices were lower, with benchmark oil for March delivery for falling to $97.10 per barrel. The euro was also subdued after recent gains, trading 0.2 percent lower at $1.3146.

In Europe, most stock markets rose Thursday, after U.S. data showed productivity rose 0.7% in fourth quarter of 2011 and initial jobless claims dropped 12,000 in the week ended Jan. 28 to a seasonally adjusted 367,000.  In any case, economic data, in general, has also helped support market sentiment at a time when uncertainty relating to Europe's debt crisis continues, despite more successful bond auctions Thursday from France and Spain.

A number of strong earnings in Europe have helped maintain trading activity, as has confirmation that mining company Xstrata PLC is in merger discussions with commodities trader Glencore International PLC.

Back on Wall Street, U.S. stocks started the day in the positive note has jobless claims where announced lower for the latest week indicating that there is improvement, albeit small, in the top market.

Source: ISFM