BS: S&P 500 Futures, Europe Shares Gain as Treasuries Retreat
U.S. index futures and European shares extended gains, while the dollar and Treasuries fell, as an unexpected drop in the American unemployment rate bolstered confidence in the world’s largest economy.
Futures on the Standard & Poor’s 500 Index expiring in December climbed 0.4 percent and the Stoxx (SXXP) Europe 600 Index rose 1.1 percent at 8:55 a.m. in New York. The dollar weakened against 13 of 16 major peers and 10-year Treasury yields were up five basis points to 1.73 percent. The S&P GSCI Index of commodities erased earlier losses. India’s S&P CNX Nifty Index was 0.7 percent lower after losing 16 percent on bad trades.
The U.S. unemployment rate unexpectedly dropped to 7.8 percent in September, the lowest since President Barack Obama took office in 2009, as employers took on more part-time workers. The economy added 114,000 workers, in-line with economists’ estimates, and August’s growth was revised higher by 46,000 jobs to 142,000.
“On balance the report looks pretty decent,” Mark Luschini, who helps manage $54 billion as chief investment strategist for Philadelphia-based Janney Montgomery Scott LLC, said in a phone interview. “The September number was pretty close to being spot on consensus and it came with an upwards revision to the August number. The market reaction is positive on a report that’s solid even if it’s unspectacular.”
Four shares gained for every one that fell in the Stoxx 600, leaving it 2.1 percent higher this week. National Bank of Greece SA rose 4.5 percent and EFG Eurobank Ergasias SA added 5.5 percent. To Vima reported the Greek lenders are in merger talks.
The S&P 500 has climbed for four straight days, bringing this week’s increase to 1.8 percent. Zynga Inc. (ZNGA) fell 17 percent in Germany after the game maker cut its forecast for full-year bookings, citing lower demand for titles such as “The Ville.”
To contact the reporters on this story: Michael P. Regan in New York at mregan12@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net
