Financial markets started the week in an optimistic mood today after stronger-than-expected U.S. hiring in July continued to buoy sentiment.
With little scheduled economic news due, Friday\'s figures showing the economy adding 163,000 jobs in July continue to drive sentiment. Though the figures eased some concern about the world\'s largest economy, the rise in the unemployment rate to 8.3% provided evidence, if any were needed, that the recovery is patchy.
The figures were
welcomed after three months when payrolls failed to meet expectations. Today\'s late-morning figures show another jump.
The data also helped markets clamber off lows registered Thursday when investors were initially disappointed by comments from European Central Bank president Mario Draghi.
In Europe today, Germany\'s DAX was up nearly 1% at 6,932 while the CAC-40 in France rose 1.05% to 3,410. The FTSE 100 index of leading British shares was almost 1% higher at 5,826.
Also
helping shore up markets is a reassessment of Draghi\'s comments. Though his comments weren\'t forceful, investors have since concluded that Draghi has paved the way to more intervention in the bond markets.
\"If last week\'s events were important in one respect, they were an admission by the ECB that inaction was no longer an option, and while the undertaking to act is indeed welcome, the intention so far remains only verbal,\" said Michael Hewson, markets analyst at CMC
Markets.
Spanish Prime Minister Mariano Rajoy came closest Friday to acknowledging that he has considered a sovereign bailout for the country when he told reporters he would consider asking for financial aid only once the ECB has fleshed out its crisis-fighting plans for buying government bonds.
Rajoy\'s statement and the reassessment of Draghi\'s action helped Spain\'s 10-year yield today dip further below the 7% threshold that is widely considered unsustainable in the long-run.
It\'s down a further 0.12 percentage points to 6.71%, having spiked up above 7% in the aftermath of Draghi\'s comments.
And the euro was steady today, having recovered the losses it posted Friday following Draghi\'s comments. It was down 0.2% at $1.2362.
A weekend statement by the People\'s Bank of China indicating it would intensify policy fine-tuning helped investment sentiment in Asia. That was among factors helping to lead Asian stock markets sharply higher.
Japan\'s
Nikkei 225 index rose 2% to finish at 8,726.29 and Hong Kong\'s Hang Seng climbed 1.7% to 19,998.72. South Korea\'s Kospi added 2% to 1,885.88.
Oil markets were steady having pushed above $90 a barrel on Friday. Benchmark crude was down 26 cents at $91.14 a barrel in electronic trading on the New York Mercantile Exchange.
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