(Bloomberg) — European stocks rose with U.S. equity-index futures as investors bet slower hiring in the world’s largest economy may delay a tapering of Federal Reserve stimulus. Aluminum hit a decade high amid political unrest in Guinea.
The Stoxx Europe 600 Index inched closer to its record high, led by technology shares. Contracts on the S&P 500 Index rose 0.2% even as U.S. markets were closed for Labor Day. Gains in Asia were led by Japan, where the equity benchmark rose to a 31-year high on wagers for new economic policies once Prime Minister Yoshihide Suga steps down.
The latest U.S. jobs report threw traders’ calculations awry after they braced for an announcement of tapering at the Fed’s September meeting. The world’s largest economy added only 235,000 jobs in August — the smallest gain in seven months — boosting chances of a delay in that announcement.
“Expectations of a delay in Fed tapering as well as a new administration in Japan is supporting equity markets and we expect this to continue,” said Sebastien Galy, senior macro strategist at Nordea Investment Funds. “Buy-on-dip is as robust as ever, taking negative news such as U.S. nonfarm payrolls as good news which is typical of an advanced carry trade.”
Aluminum hit the highest in over a decade as political unrest in Guinea fueled concerns over supply of the raw material needed to make the metal. A unit of the military seized power and suspended the constitution, raising the possibility of disruption to bauxite shipment from the key global supplier.
The U.S. dollar rose Monday for the first time in five days. The cash market in Treasuries was closed. The S&P 500 was little changed Friday and Treasury yields advanced as investors digested the disappointing U.S. payroll growth and faster-than-projected wage increases.
Elsewhere, oil extended losses after Saudi Arabia slashed crude prices for Asian buyers. Bitcoin was up for a sixth day, trading just below $52,000.
What to watch this week:
U.S. President Joe Biden will likely make his choice this week on whether to renominate Fed Chair Jerome Powell to a second termReserve Bank of Australia rate decision TuesdayChina trade data will provide clues on its economic recovery, TuesdayEl Salvador’s Bitcoin law takes effect, making the virtual currency legal tender, TuesdayDallas Fed President Robert Kaplan holds a virtual town hall discussion WednesdayECB President Christine Lagarde holds a press conference after the bank’s rate decision ThursdayChina PPI, CPI, new yuan loans, money supply, aggregate financing, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.5% as of 9:34 a.m. London timeFutures on the Nasdaq 100 rose 0.3%Futures on the Dow Jones Industrial Average rose 0.2%The MSCI Asia Pacific Index rose 0.8%The MSCI Emerging Markets Index rose 0.5%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.2% to $1.1862The Japanese yen fell 0.2% to 109.88 per dollarThe offshore yuan fell 0.2% to 6.4487 per dollarThe British pound fell 0.2% to $1.3841
Bonds
Germany’s 10-year yield was little changed at -0.36%Britain’s 10-year yield declined one basis point to 0.71%
Commodities
Brent crude fell 0.9% to $71.97 a barrelSpot gold fell 0.2% to $1,824.33 an ounce
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