US jobs data provides boost to markets - WAOW - Newsline 9, Wausau News, Weather, Sports

US jobs data provides boost to markets

Posted:
  • Most Read StoriesMost Read StoriesMore>>

  • Radar Alert

    Stormy night in central Wisconsin

    Stormy night in central Wisconsin

    A few scattered light showers through early afternoon, then heavier rain and storms possible toward evening.More >>
    A few scattered light showers through early afternoon, then heavier rain and storms possible toward evening.
    More >>
  • Newsline 9 says goodbye to Cami Mountain

    Newsline 9 says goodbye to Cami Mountain

    (WAOW) -- It's a bittersweet day at Newsline, as we say goodbye to Cami Mountain. Cami is leaving us to start an exciting new chapter in her life as a mother.Friday morning, hundreds of you left your well wishes on our Facebook page. And we gave her a special surprise for her last day on air. We are happy to announce Paige Hulsey will be taking over the chair on Tuesday.More >>
    (WAOW) -- It's a bittersweet day at Newsline, as we say goodbye to Cami Mountain. Cami is leaving us to start an exciting new chapter in her life as a mother.Friday morning, hundreds of you left your well wishes on our Facebook page. And we gave her a special surprise for her last day on air. We are happy to announce Paige Hulsey will be taking over the chair on Tuesday.More >>
  • Stewart says Ward's death will affect him forever

    Stewart says Ward's death will affect him forever

    (AP Photo/Terry Renna, File). FILE - In this Feb. 23, 2014, file photo, Tony Stewart is introduced before the NASCAR Daytona 500 Sprint Cup series auto race at Daytona International Speedway in Daytona Beach, Fla.(AP Photo/Terry Renna, File). FILE - In this Feb. 23, 2014, file photo, Tony Stewart is introduced before the NASCAR Daytona 500 Sprint Cup series auto race at Daytona International Speedway in Daytona Beach, Fla.
    Tony Stewart says the death of Kevin Ward Jr. will "affect my life forever" as he returned to the track for the first time since his car struck and killed the fellow driver during a sprint-car race in New York.More >>
    Tony Stewart says the death of Kevin Ward Jr. will "affect my life forever" as he returned to the track for the first time since his car struck and killed the fellow driver during a sprint-car race in New York.More >>
LONDON (AP) -

Financial markets rose Friday as an increase in U.S. hiring suggested the world's largest economy is not heading for recession but recovering, albeit slowly.

The news helped offset disappointment from the previous day, when the European Central Bank failed to deliver on bold promises of action to overcome the region's debt crisis.

The U.S. Labor Department said Friday that 163,000 jobs were added in July, a timid sign of growth after three months of worryingly weak economic indicators and the highest number since February. The increase, however, was not enough to prevent a 0.1 point increase in the unemployment rate, to 8.3 percent.

Analysts said the number was strong enough to dispel fears of imminent recession, but likely not so strong as to dissuade the Federal Reserve from taking more action to help the economy.

"On balance, we doubt this would be enough to persuade the Fed to hold fire in September," said Paul Ashworth, analyst at Capital Economics.

By mid-afternoon in Europe, Britain's FTSE 100 was up 1.9 percent to 5,768.07, while Germany's DAX added 2.7 percent to 6,784.79. France's CAC 40 climbed 3.1 percent to 3,332.00.

Wall Street opened higher, with the Dow industrial average up 0.4 percent and the broader S&P 500 rising 0.6 percent.

The U.S. data helped steady markets, which plunged on Thursday when ECB President Mario Draghi offered no concrete new measures to save the euro, only a plan that is to go through committee approval.

On Friday, the euro was 0.7 percent higher at $1.2268. Even the bond markets improved after yields for financially struggling Spain and Italy jumped higher on Thursday. Spain's 10-year bond yield fell back below 7 percent, to 6.93 percent, still a painfully high level.

Investors had hoped the ECB would resume purchases of government bonds to lower the borrowing costs of financially struggling countries such as Spain and announce other measures to calm a crisis that is dragging down global economic growth.

But Germany, which is Europe's biggest economy, is opposed to the ECB operating outside its mandate to control inflation and wants any government bond purchases to be financed by other funds set up to deal with the crisis.

The problem with the German approach, some analysts say, is that Europe's bailout funds lack the firepower to make much of a difference if the financial situation in a big economy such as Spain or Italy dramatically worsens.

A surge in Spain's borrowing costs early last week underlined that a bailout of one of Europe's largest economies is probably unaffordable and could splinter the common currency.

Earlier, Asian indexes closed lower, as traders there caught up with the ECB news.

Japan's Nikkei 225 stock average finished down 1.1 percent at 8,555.11, and Hong Kong's Hang Seng was 0.2 percent lower to 19,652.50. Australia's S&P/ASX 200 shed 1.1 percent to 4,221.50, and South Korea's Kospi dropped 1.1 percent to 1,848.68. The Shanghai Composite rose 1 percent to 2,132.80.

In energy trading, benchmark crude was up $1.50 at $88.63 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.78 to close at $87.13 on Thursday in New York.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WAOW. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Chief Engineer Russ Crass at 715-842-2251. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.