Global stocks, dollar gain as payrolls fuel risk-on trades

EghtesadOnline: Stock markets rose on Monday and the dollar extended gains as risk appetite revived following strong U.S. job figures that bolstered expectations of faster growth in the world's biggest economy.

News ID: ۷۳۵۶۳۲

08 August 2016

According to Reuters, the MSCI All-Country World index .MIWD00000PUS rose 0.4 percent, as did the pan-European STOXX 600 index , supported by a broad equity rally on Friday's payrolls data and as Europe's under-pressure banks .SX7P extended gains from post stress-test lows.

The dollar edged up against a basket of six major currencies .DXY, while euro zone bond yields climbed as the U.S. numbers also drove a sell-off in fixed income markets.

Yukio Ishizuki, currency strategist at Daiwa Securities, said the robust signals from the U.S. economy were driving investors away from safe-haven assets such as the yen JPY=.

"The payrolls data puts markets on risk-on mode, making it difficult to buy the yen for now," said Ishizuki.

Gold prices also slipped, hitting a one-week low.

With stocks back in fashion, Andreas Clenow, chief investment officer at ACIES Asset Management in Zurich, said U.S. equity markets were the preferred choice for many.

"The U.S. markets look pretty healthy. We keeping making record highs in the U.S, but the European stock markets look much more sluggish," he said.

The MSCI Emerging Market index .MSCIEF advanced 1 percent.

Oil prices rose, lifted by reports of renewed talks among some OPEC state to rein in output, a proposal that non-OPEC producer Russia was quick to dismiss.