Stocks rise despite mixed US jobs report

LONDON :Global stock markets rose on Friday despite mixed US jobs data that raised questions about the pace of interest rate hikes.

US employers added a net 164,000 new positions for the month, according to the Labor Department, fewer than the 190,000 analysts were expecting.

Meanwhile the unemployment rate fell to 3.9 percent, the lowest since December 2000, suggesting that employers are finding it harder to find workers.

But the jobs report showed modest wage pressures, with average hourly earnings up only 0.2 percent for the month, in line with analyst expectations.

“The closely watched update from the US was broadly weaker than expected, but dealers don’t seem to be fazed by the report,” said markets analyst David Madden at CMC Markets UK.

On Wall Street, the Dow was up 1.0 percent approaching midday.

London closed 0.9 percent higher, with Frankfurt climbing 1.0 percent. Paris trailed with a gain of 0.3 percent.

With the Federal Reserve looking for signs of rising prices and wages to hike interest rates, the report did not provide a strong indication that policymakers would move aggressively.

“Traders are still confident the Fed will hike interest rates next month, but how many more rate raises beyond then now seems less clear,” said Madden.

The low job creation figure was not comforting amid rising concerns of a slowdown due to possible trade wars triggered by President Donald Trump as he seeks to improve the US’s terms of trade.

“Global trade uncertainty is also lingering as the US and China wrapped up another round of talks with little accomplished,” analysts at Charles Schwab brokerage wrote.

– ‘Big differences’ at trade talks –

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In Beijing, the biggest hitters in Donald Trump’s administration met their Chinese counterparts for a second day of high-stakes trade talks on Friday.

The Chinese government said the talks ended with “big differences”, leaving the world’s two largest economies on the brink of a trade war that could have knock-on effects on the global economy.

Treasury Secretary Steven Mnuchin and top White House economic adviser Peter Navarro, a prominent China critic, led the US delegation.

Xi Jinping’s top economic adviser Vice Premier Liu He led the talks for China.

“Both sides recognise there are still big differences on some issues and that they need to continue to step up their work to make progress,” Beijing said in a statement released by the official Xinhua state news agency.

The talks were aimed at forestalling a looming conflict, with both sides prepared to pull the trigger on tariffs that could affect trade in billions of dollars of goods.

Oil markets are also awaiting Trump’s decision on the Iran nuclear deal, with speculation rife that he will tear it up.

Many fear that option could spark geopolitical turmoil and put fresh upside pressure on crude prices.

Both main contracts are sitting around levels not seen since late 2014, though data showing rising US production and stockpiles is tempering gains.

In European trading, shares in Societe Generale tumbled 5.2 percent to 42.58 euros after the French bank posted weak profits.

On the upside, shares in British-Airways parent IAG jumped 5.8 percent to 678 pence in London after it reported a 75-percent jump in operating profits for the first quarter.

– Key figures around 1530 GMT –

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New York – Dow: UP 1.0 percent at 24,173.88 points

London – FTSE 100: UP 0.9 percent at 7,567.14 (close)

Frankfurt – DAX 30: UP 1.0 percent at 12,819.60 (close)

Paris – CAC 40: UP 0.3 percent at 5,516.05 (close)

EURO STOXX 50: UP 0.5 percent at 3,547.38

Hong Kong – Hang Seng: DOWN 1.3 percent at 29,926.50 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,091.03 (close)

Tokyo – Nikkei 225: Closed for a public holiday

Euro/dollar: DOWN at $1.1929 from $1.1990 at 2100 GMT

Pound/dollar: DOWN at $1.3516 from $1.3571