Global shares, oil set for bumper weeks as pay­rolls near

The Pak Banker - - MARKETS/SPORTS -

The best week for Asian shares in five months and the se­cond six per­cent weekly jump in a row in oil prices put global mar­kets in a bouyant mood to­day, ahead of closely-fol­lowed monthly US jobs data. Euro­pean shares opened 0.2 per­cent higher, on course for their third straight week of gains as solid re­sults for the world's largest ad­ver­tiser WPP (WPP.L) dove­tailed with the lat­est tick up in com­modi­ties mar­kets and hopes for an­other shot of Euro­pean Cen­tral Bank stim­u­lus next week.

In­vestors seem to have put re­cent wor­ries about a po­ten­tial global re­ces­sion firmly be­hind them for the mo­ment and the U.S. ' non-farm' pay­rolls num­bers at 1330 GMT (06:30 a.m. EST) are ex­pected to show the la­bor mar­ket in the world's largest econ­omy tick­ing along nicely.

A poll of econ­o­mists fore­casts them to show 190,000 jobs were added last month and that the over­all un­em­ploy­ment level stay­ing at an eight-year low of 4.9 per­cent. "We didn't be­lieve the ' world is go­ing to end' story, but the way the mood has changed in the last cou­ple of weeks is just crazy," said Janus Cap­i­tal port­fo­lio man­ager and global re­search an­a­lyst Ryan Myer­berg. "Since the be­gin­ning of the year it has been like driv­ing down the mo­tor­way where ev­ery cou­ple of miles a trac­tor has over­turned, whether that be China, oil, the banks, that you have to swerve around."

The dol­lar was grind­ing higher again on cau­tious bets that a good pay­rolls num­ber later will, as Myer­berg at Janus ex­pects, sup­port the Fed­eral Re­serve's case to in­crease U.S. rates again later in the year. The green­back was up 0.1 per­cent against a bas­ket of ma­jor cur­ren­cies as the euro nudged back to $1.0936 EUR= to roughly where it started the week and the yen JPY= stead­ied at 113.74.

Traders also locked in some prof­its on ster­ling GBP=D4 hav­ing seen it bounce back al­most 2 per­cent this week from last month's 5 per­cent 'Brexit' bat­ter­ing.

In the bond mar­kets, in­vestors were be­gin­ning to head to the side­lines ahead of the pay­rolls data later. US Trea­suries were flat in both the 2- and 10- year space, Ger­man Bund yields DE10YT=TWEB bobbed up marginally and Por­tu­gal's yields were not far from one-month lows ahead of the first of a num­ber of back-to­back credit rat­ing re­views.

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