Global share markets rise, bonds fall

NEW YORK: Global stock markets rose on Friday on a better-than-expected US monthly jobs report that signaled the world’s largest economy ended the second quarter with strong growth momentum, while US bond prices fell on investor worries over the Federal Reserve’s response.
The MSCI All Country World index rose 0.12 percent, and the pan-European STOXX index rose 0.24 percent, while in the United States, the S&P 500 and Nasdaq hit record highs.
“For capital markets, equities and bonds, this was a Goldilocks report,” said Darrell Cronk, chief investment officer at Wells Fargo wealth and investment management. “This was perfect. There were enough jobs that you’d want to see but not so many that it concerns people that the Fed may have to act sooner.”
Still, gold jumped as much as 1 percent earlier on Friday, closing in on $1,800, on a weakened dollar as investors weighed prospects that Fed policy would tighten.
On Wall Street, the Dow Jones Industrial Average rose 40.28 points, or 0.12 percent, the S&P 500 gained 13.56 points, or 0.31 percent, and the Nasdaq Composite added 40.36 points, or 0.28 percent.
US government bond prices for the 10-year note fell to yield 1.4407 percent. Eurozone government bond yields fell, as investor fears over the rise in COVID-19 cases beat the strong US economic data. Germany’s 10-year bond yield , the eurozone benchmark, dropped 3.5 basis points to -0.20 percent, its lowest level since mid-June.
The dollar slipped from a three-month high on Friday, weighed down by some of the weaker details of what was an overall strong US nonfarm payrolls report for June.
The dollar index fell 0.065 percent, with the euro down 0.13 percent to $1.1833.
The Japanese yen strengthened 0.19 percent versus the greenback at 111.30 per dollar.
While the prospects of a strong economic recovery underpin equity markets, investors remained nervous that a sharp recovery from the pandemic could push up inflation to an uncomfortable level for the Fed.
Former US Treasury Secretary Lawrence Summers said massive US fiscal spending will set off inflationary pressures of a kind not seen in a generation, but others argue that until wage pressures return in force, talk about a return to 1970s-style inflation is just that.
Spot gold added 0.4 percent to $1,782.81 an ounce. US gold futures gained 0.41 percent to $1,783.10 an ounce.
Brent crude was last down $0.20, or 0.26  percent, at $75.64 a barrel. US crude was last down $0.33, or 0.44 percent, at $74.9 per barrel.