AFP, New York :
Global stocks shot higher on Friday following a strong US jobs report and dovish comments from Federal Reserve Chair Jerome Powell on the prospects for higher interest rates.
Those back-to-back market-friendly developments helped US and European stock bourses surge higher and set aside for now nervousness over trade wars, a US government shutdown and a slowing economy that have pressured stocks for most of the last month.
“A solid set of job numbers and some comfortable words from the chairman of the Federal Reserve have been just the ticket to get markets into bullish mode,” said Chris Beauchamp, chief market analyst at online trading platform IG.
The Dow finished up 3.3 percent, or nearly 750 points, to end the week at 23,433.16, more than making up for the 2.8 percent slide on Thursday amid worries over slowing growth.
Bourses in Paris, Frankfurt and London all surged at least two percent, also boosted in part by the US momentum. Earlier, Japan’s Nikkei had slumped 2.3 percent, due in part due to a strengthening yen, which advanced further on the US currency following Powell’s dovish commentary.
The losses in the Japan also followed Thursday’s grim Wall Street session, which saw major indices end down more than two percent after Apple slashed its revenue forecast on weak demand in China and a US report showed manufacturing activity slumping to a two-year low.
Employment data showed the US added 312,000 jobs in December, much above analyst expectations, strengthening the case of those who have argued that markets have overreacted to signs that US growth may have peaked.
Stocks rallied further after Fed Chair Jerome Powell told a gathering of economists that the US central bank had no “pre-set” plan for interest rates and was carefully monitoring economic conditions.
“Markets are expressing concerns about global growth in particular and trade negotiations,” Powell said.
Global stocks shot higher on Friday following a strong US jobs report and dovish comments from Federal Reserve Chair Jerome Powell on the prospects for higher interest rates.
Those back-to-back market-friendly developments helped US and European stock bourses surge higher and set aside for now nervousness over trade wars, a US government shutdown and a slowing economy that have pressured stocks for most of the last month.
“A solid set of job numbers and some comfortable words from the chairman of the Federal Reserve have been just the ticket to get markets into bullish mode,” said Chris Beauchamp, chief market analyst at online trading platform IG.
The Dow finished up 3.3 percent, or nearly 750 points, to end the week at 23,433.16, more than making up for the 2.8 percent slide on Thursday amid worries over slowing growth.
Bourses in Paris, Frankfurt and London all surged at least two percent, also boosted in part by the US momentum. Earlier, Japan’s Nikkei had slumped 2.3 percent, due in part due to a strengthening yen, which advanced further on the US currency following Powell’s dovish commentary.
The losses in the Japan also followed Thursday’s grim Wall Street session, which saw major indices end down more than two percent after Apple slashed its revenue forecast on weak demand in China and a US report showed manufacturing activity slumping to a two-year low.
Employment data showed the US added 312,000 jobs in December, much above analyst expectations, strengthening the case of those who have argued that markets have overreacted to signs that US growth may have peaked.
Stocks rallied further after Fed Chair Jerome Powell told a gathering of economists that the US central bank had no “pre-set” plan for interest rates and was carefully monitoring economic conditions.
“Markets are expressing concerns about global growth in particular and trade negotiations,” Powell said.
