Dollar holds gains after US jobs report

227,000 jobs added in January, beating forecasts, while average earnings disappoint

Jobs data figures published on Friday in the United States powered through forecasts, with 227,000 more jobs outside the agricultural sector created in January. The index tracking the world’s reserve currency against six of its rivals is up 0.3%, after it touched a 2½-month low earlier in the week.

Stock markets in Europe were higher and US futures trade is pointing to modest opening gains on Wall Street. The trading pattern comes after a more mixed showing for other components of the influential data.

European equities picked up some modest momentum in afternoon trade on Friday. In London the FTSE 100 was 0.6% up, while the Xetra Dax 30 was 0.5% up. The region-wide FTSE Euro Stoxx 600 registered an increase of 0.7% as financials and energy stocks leading the way.

In China, markets re-opened for the first time in a week as the lunar New Year public holiday ended. The Shanghai Composite was down 0.6%, while the technology-focused Shenzhen Composite was 0.4% off. Hong Kong’s Hang Seng, which has been trading since Wednesday, slipped 0.2% while Japan’s Topix ticked up 0.3% as the Bank of Japan’s efforts to rein in bond yields helped weaken the yen.

Yields on Japanese government bonds whipped around on Friday after the BoJ announced it would buy an unlimited number of 10-year JGBs at a fixed yield of 0.11%. The move should help counter the recent rise in the 10-year yield to their highest level since January 29 2016 when the BoJ decided to cut benchmark interest rates into negative territory for the first time. The 10-year JGB yield was up 2.7 basis points at 0.143%.

Oil markets were firmer, with Brent crude, the international benchmark, up 0.6% at $56.87 a barrel and West Texas Intermediate up 0.3% at $53.73. Gold was down 0.4% at $1,210.98 an ounce.