11:40 AM New York – Stocks on Wall Street surged at the opening after June employment increased better-than-expected 195,000 and jobless rate held at 7.6%. European markets erased yesterday’s gains in cautious trading.
Stocks on Wall Street opened higher after U.S. jobs growth accelerated in June and unemployment rate held steady.
Crude oil futures increased 0.4% to $101.62 and gold price declined 3% to $1,215.66 an ounce in recent trading.
U.S. Employment Picks Up, Jobless Rate at 7.6%
U.S. employers added 195,000 workers in June, second monthly increase in a row, the Labor Department said today in Washington.
The jobless rate held from May at 7.6% but hourly earnings in the year to the month advanced the most since July 2011, according to a separate report by the department.
The monthly jobs report adds to a string of latest improving economic data and could affect the Fed’s time-table in unwinding stimulus which is likely to begin as early as middle of next year.
If jobs market and other economic activities indicator continue to improve, the Fed may accelerate tapering of stimulus as early as December.
In the month, private sector added 202,000 jobs, while government at all levels – state, local and federal governments – eliminated 7,000 staff.
European markets lost all the gains in yesterday’s trading after two central banks in region signaled low rates for an extended period.
In London, FTSE 100 index declined 0.6%, in Frankfurt the DAX index dropped 1.9% and in Paris the CAC 40 index fell 0.8%.
European Central Bank, for the first time, signaled the direction of interest rate and said the rates are likely to remain low for an extended period and may fall further if needed.
Separately, Bank of England also said that the recent increase in rates are not justified and economy remains weak. The central bank also added rates are likely to remain low in the foreseeable future.
In Asian markets, indexes traded higher after supportive comments from central banks in Europe.
Nikkei Stock Average in Tokyo increased 0.3% and indexes in Shanghai gained 0.1%.
In Mumbai, the Sensex index rebounded to 0.4% after information services companies are expected to report higher earnings on a sharp fall in rupee against dollar.
Samsung declined in Korea after it estimated lower than expected earnings and dragged the Seoul index by 0.3%.
U.S. Stocks in Review