Confidence in global economy boosted by US jobs figures

US stocks rose to extend a three-week rally as investors shook off earlier reticence over a decline in wages shown in the latest jobs figures to focus on a surge in hiring that bolstered optimism the economy can weather a global slowdown.

DUBLIN

It was a quiet day in Dublin but the Iseq Index finished the day up 0.5 per cent. After its star performance following positive results on Thursday, CRH dropped back 1 per cent and closed weaker at the end of the day.

Permanent TSB, which has been under some pressure lately, was strong and jumped 5.5 per cent, ahead of annual figures due next week.

Independent News & Media closed up 4 per cent on the back of solid results in the morning. The company has seen two consecutive years of advertising growth after previously enduring seven years of decline.

Property firm Hibernia Reit announced the €26.5 million purchase of Marine House, an office building in the centre of Dublin. However, its shares finished the day flat.

Irish Continental publishes results on Monday and its stock was up 0.6 per cent. Origin Enterprises outperformed the market ahead of results on Thursday and finished up 1.5 per cent. Paddy Power was down 2 per cent and has been weak for several days. Ryanair finished up 1.8 per cent.

LONDON

Britain’s mining index climbed to a four-month high yesterday, boosted by a rally in the prices of major industrial metals.

Glencore, Anglo American, BHP Billiton, Antofagasta and Rio Tinto rose by 5.9 to 11.9 per cent. They helped the index surge 8.1 per cent, taking 2016 gains to 31 per cent as copper prices climbed to their highest in nearly four months yesterday.

The advance by mining shares helped the blue-chip FTSE 100 to close 1.1 per cent higher at 6,199.43 points, outperforming the broader European market.

The index also benefited from a surge in US nonfarm payrolls, a sign of labour market strength that could further ease fears the economy might be heading into recession.

Nonfarm payrolls increased by 242,000 jobs last month and the unemployment rate held at an eight-year low of 4.9 per cent even though more people joined the labour market.

Among the gains was budget airline easyJet, which rose 4.5 per cent after saying passenger numbers rose 9.8 per cent in February.

EUROPE

European shares rose yesterday after strong US jobs data eased concerns about a possible recession in the world’s largest economy, with miners boosted by firmer metals prices and auto stocks making their seventh day of gains in a row.

The pan-European FTSEurofirst 300 index rose 0.7 per cent to 1,344.62 points, scoring its third straight week of gains, while the euro zone’s Euro Stoxx 50 index climbed 0.8 per cent.

Copper was headed for its biggest weekly advance in about six months, amid optimism about demand and cuts in output.

Auto stocks were also up, for the seventh straight sessions, led by German carmaker Volkswagen which ended up 4.2 per cent.

NEW YORK

Stock markets worldwide edged up yesterday, on pace for a fourth day of gains, as commodities prices firmed and strong US jobs growth bolstered confidence in the global economy.

On Wall Street, the Dow Jones industrial average rose 74.19 points, or 0.44 per cent, to 17,018.09, moving above 17,000 for the first time since January 6th.

The benchmark S&P 500 gained 8.89 points, or 0.45 per cent, to 2,002.29, and the Nasdaq Composite added 16.80 points, or 0.36 per cent, to 4,724.23.

Brazil’s stock market rose to its highest in at least six months after police detained former president Luiz Inácio Lula da Silva for questioning in an investigation of a bribery and money laundering scheme. – (Agencies)