Global markets rallied strongly on Friday night, after US payrolls data rose more than expected in July.
In London, the UK’s FTSE 100 surged 125 points (+2.2%) to settle at 5787, whilst the French CAC (+4.4%) and German DAX (+3.9%) enjoyed huge gains.
Stateside, the Dow Jones surged 217 points (+1.7%) to settle at 13096, whilst the broader S&P (+1.9%) and NASDAQ (+2%) enjoyed similar gains.
US payrolls increased by a seasonally adjusted 163,000 jobs in July, the Labor Department reported, topping economists’ expectations for the addition of 95,000 positions.
The unemployment rate rose to 8.3% versus expectations for it to remain flat at 8.2%.
Service-sector activity expanded at a slightly faster pace in July than a month earlier, according to the Institute for Supply Management, bucking economists’ expectations for the group’s nonmanufacturing index to show slowing expansion.
The US dollar fell against most of its major counterparts as risk appetite increased amid continued speculation that central banks may take further steps to boost economic growth.
Crude oil prices jumped 4.9%, to settle at $91.40 a barrel.
Oil surged the most in a month after US payrolls climbed more than estimated and service industries expanded at a faster pace, bolstering optimism about economic strength in the world’s biggest crude-consuming country.
Gold prices added 1.2%, to finish at $1,606.00 a troy ounce.
Gold futures jumped most in more than a week after a report showed the US jobless rate unexpectedly increased to a five-month high.
Today’s session will bring us data in the form of Melbourne Institute inflation gauge (10:30am, AEST) and ANZ job advertisements (11:30am, AEST).