Global Stocks Rise As US Jobs Dampens Rate Talk

LONDON, (UrduPoint / Pakistan Point News - 2nd September, 2016) : World stock markets rose Friday as traders said weaker-than-expected US jobs figures indicated a Federal Reserve interest rate hike is still on the cards but probably not this month.

Wall Street shares opened higher and Europe's main markets were also up after the highly anticipated US jobs creation data for August fell short of expectations. But analysts said that although the employment data was not strong enough to spur an imminent rate rise, it revealed a steady overall jobs market in the world's biggest economy.

"The August employment report showed solid employment gains, a stable unemployment rate, but weaker details, notably a decline in the average workweek and softer average hourly earnings," Unicredit's Harm Bandholz said in a note to investors.

"As the August numbers have tended to come in on the softer side in the past, we think that this mostly reflects seasonal adjustment problems rather than underlying weakness," he continued. "The report thus leaves the Fed on track for a rate hike in December -- September seems to be off the table now," he added.

A week ago US Federal Reserve chief Janet Yellen told global central bankers that the case for a rate increase had "strengthened" in recent months but gave no clear timeline. - 'Some concerns' - ==================== Meanwhile, the greenback recovered ground after tumbling Thursday in the wake of weak US manufacturing data.

London's benchmark FTSE 100 index rose a convincing 1.4 percent as the pound eased back against the Dollar following its rally the previous day. In the eurozone, Frankfurt's DAX 30 index firmed 0.8 percent and the Paris CAC 40 was 1.6 percent higher compared with the close on Thursday.

The US jobs data comes on the heels of Thursday's closely-watched ISM manufacturing gauge having hit an eight-month low. Analysts at Charles Schwab said the latest figures "may be causing some concerns about the health of the US economy".

US job creation slowed in August, adding 151,000 new positions for the month, according to the data released Friday by the Labor Department.

While the economy continued to create jobs, the total represented a precipitous drop from July's revised total of 275,000 and was also well below analyst expectations.

The unemployment rate remained steady at 4.9 percent for the third month in a row, with the number of long-term unemployed unchanged at 2 million people. - Oil rebounds - ================= In corporate news, samsung said it would suspend sales of its latest flagship smartphone Galaxy Note 7 as reports of exploding batteries threatened to damage the reputation of the South Korean electronics giant.

Samsung -- the world's top maker of smartphones and ordinary mobile phones -- will also offer new devices for those who have already bought the large-screen smartphone, its mobile chief said. Ireland's government agreed to recommend an appeal against the EU's tax ruling on Apple but said it was recalling parliament early for a special session to debate the issue.

It follows a ruling earlier in the week by the EU which said Apple owed 13 billion Euros ($15 billion), plus interest, in back taxes, putting Ireland at the centre of a row between Europe and the United States.

Oil prices rebounded as traders fished for bargain crude after the previous day's heavy losses, and eyed an upcoming meeting to tackle a global supply glut. US benchmark West Texas Intermediate (WTI) for October delivery rose 97 cents to $44.13 a barrel.

Brent North Sea crude for November rose to $46.58 a barrel. - Key figures around 1345 GMT - =============================== London - FTSE 100: UP 1.4 percent at 6,843.29 points Frankfurt - DAX 30: UP 0.8 percent at 10,622.92 Paris - CAC 40: UP 1.6 percent at 4,512.40 EURO STOXX 50: UP 1.5 percent at 3,062.07 New York - DOW: UP 0.5 percent at 18,518.12 Tokyo - Nikkei 225: DOWN 1.16 points at 16,925.68 (close) Shanghai - Composite: UP 0.1 percent at 3,067.35 (close) Hong Kong - Hang Seng: UP 0.5 percent at 23266.70 (close) Euro/dollar: UP at $1.1214 from $1.1199 late Thursday Dollar/yen: UP at 103.53 Yen from 103.23 yen Pound/dollar: UP at $1.3331 from $1.3270