Gold Silver Reports — MARKETS ROUND-UP – STOCKS RISE IN ASIA, EUROPE ON US JOBS OUTLOOK AND ECB FOCUS — Asian stocks rose, with the regional benchmark index heading for a one-year high, after weaker-thanexpected payrolls data in the world’s biggest economy tempered speculation the Federal Reserve may raise interest rates as soon as September even as European stocks headed for an eight-month high on investor speculation that central banks will continue to keep monetary policy accommodative.
The MSCI Asia Pacific Index jumped 1.4% to 140.04 as of 4:09 p.m. in Hong Kong, heading for its highest close since August 2015. The S&P 500 Index rose 0.4% on Friday, halting a three-day decline, after jobs report showed American employers added 151,000 workers to nonfarm payrolls in August, below the 180,000 projected by economists. T hat brought relief to investors, as odds of the Fed raising rates this month slid to 32% from 42% a week ago, while bets for tightening in December declined 6 percentage points to 59%.
“In the short-term, equity markets will be mildly positive because the Fed probably will only hike rates in December after the US presidential elections,“ Vasu Menon, vice president for wealth management research at OverseaChinese Banking Corp in Singapore, said.
Friday’s jobs data, along with weaker-than-forecast US manufacturing on Thursday , raised specu l a t i o n t h a t p a t c hy growth in the economy may prompt the Fed to sit pat for longer.
M e a n w h i l e , ArcelorMittal led miners higher as leaders of the Group of 20 major economies mentioned the global steel glut in their communique at a meeting in China. Energy stocks rose with crude as Russia and Saudi Arabia agreed to work together to stabilize the global oil market, although g ains were pared after they fell short of agreeing a freeze on output. Hugo Boss AG helped drag retailers to the biggest drop on the Stoxx 600, retreating 2.1% after UBS Group AG recommended selling shares because of risks to 2017 earnings.
The Stoxx Europe 600 Index climbed 0.2% to 351.16 at 1:16 p.m. in London. On Friday, it jumped to its highest level since April after US data signalled the labour market is holding steady , while not advancing the case for an imminent rate increase. Odds of a Fed hike in September stand at 34%. Investors will focus on this week’s European Central Bank meeting, after data showed the region’s economy lost momentum in August. We would love to hear from you on whata you think about our new Markets pages. — Neal Bhai Reports