World’s market gets its advantages after BOE announcement and is ready for U.S. jobs report
Stocks rose around the world and metals gained on speculation central bank stimulus measures will support the global economy. The dollar weakened before a report forecast to show growth in payrolls slowed to this year’s average pace, Bloomberg reports
Miners led European shares to a third day of gains, while emerging markets extended their weekly advance as negative interest rates in Europe and Japan boost demand for riskier assets. Aluminum and zinc led metals higher. A measure of the dollar fell for the first time in three days and Treasuries were little changed. Vodafone Group Plc was offering the longest-maturity corporate bond in sterling this year after borrowing costs in the currency tumbled the most since May 2009.
Traders are preparing for the monthly U.S. jobs report in a week that saw the Bank of England unveil a stimulus package while Japan and Australia took steps to shore up their economies. Analysts predict America’s employment market continued to improve at a pace that probably won’t trigger the Federal Reserve to push ahead with raising interest rates this year.
“There’s a lot of hope that central banks can counter any downside to growth, especially after the Bank of England shot a pretty big torpedo yesterday,” said Dirk Thiels, head of investment management at KBC Asset Management in Brussels. “But anxiety about the economy can just as easily come back as it went away. It’s important that the U.S. holds strong, as that also helped bring optimism back to markets.”