More US jobs boost stock markets across globe

Almost 300,000 private-sector jobs were created last month in the US, raising expectations for another jobs report today.

The US "private payrolls" report released on Wednesday revealed that 297,000 private-sector jobs were created last month, boosting expectations for today's report on "non-farm payrolls", which is forecast to show the US economy adding 150,000 jobs.

The positive outlook cheered global markets. Asia led the momentum as Japan's Nikkei jumped 1.44 per cent to 10,529.76 points and China's Hang Seng moved 0.12 per cent higher to 23,786.30.

US markets opened marginally down, as New York's Standard & Poor's 500 Index slipped 0.1 per cent to 1,275.25 points and the Dow Jones Industrial Average fell 0.1 per cent to 11,710.78. But futures on both indexes reflected confidence in the US markets making gains.

European stocks gained, with the Stoxx Europe 600 Index rising to its highest level in more than two years. It was trading up 1 per cent at 282.30 points. London's FTSE 100 gained in afternoon trading, rising 0.45 per cent to 6,070.80.

Locally, the UAE was mixed. The Dubai Financial Market General Index closed 1.24 per cent higher at 1,668.68 while the Abu Dhabi Securities Exchange General Index fell 0.16 per cent to 2,752.33.

Crude was buoyed by signs that the economy of the world's biggest consumer could improve as it extended its highs above $90 a barrel on the New York Mercantile Exchange. This was partly on the back of renewed confidence that a double-dip recession was unlikely, analysts said.

Demand for oil in the US has crossed the 20 million barrels a day mark for the first time since February 2008, according to Amrita Sen, an energy analyst at Barclays Capital.

"It's been a very strong swing. An improving [US] economy has definitely helped oil demand," Ms Sen said.

Shares in the energy giant BP were also up 2.25 per cent to 510.50 pence in afternoon trading on the London Stock Exchange. The shares brushed off a US report that criticised the oil company's contractors and regulators as well as BP for the Gulf of Mexico oil spill last year. BP shares are up almost 10 per cent since the end of last month.

The dollar also advanced as investors focused on the US economy, strengthening 0.3 per cent to $1.3111 against the euro. The only dull spot for investors was the price of gold, which fell as low as $1,364 yesterday after reaching a record high of $1,432.50 at the beginning of last month.

* with agencies