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GLOBAL MARKETS-U.S. stocks gain 1 pct led by tech gains; oil prices jump

Published 2018-05-04, 03:38 p/m
© Reuters. GLOBAL MARKETS-U.S. stocks gain 1 pct led by tech gains; oil prices jump
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* Eyes on U.S. China trade talks

* U.S. dollar higher despite jobs data

* Oil prices rise

By Caroline Valetkevitch

NEW YORK, May 4 (Reuters) - U.S. stocks jumped more than 1 percent on Friday, helped by Apple and other technology shares and by data that showed weaker-than-expected U.S. jobs and wage growth, while U.S. oil prices hit their highest in more than three years.

Apple AAPL.O shares rose after Warren Buffett's Berkshire Hathaway (NYSE:BRKa) BRKa.N raised its stake in the iPhone maker. Labor Department's closely watched report showed non-farm payrolls increased by 164,000 jobs last month, while the unemployment rate fell to 3.9 percent. However, wages edged up only 0.1 percent, easing concerns that inflation pressures were increasing. bolstered investor views that the pace of U.S. rate hikes will be gradual.

"If people were worried about a faster pace of hike, this report should calm those ... The curve will likely resume its flattening bias in the long term, but it won't invert in the foreseeable future," said Collin Martin, fixed income strategist at Schwab Center for Financial Research in New York.

The U.S. central bank on Wednesday left interest rates unchanged and said it expected annual inflation to run close to its "symmetric" 2 percent target over the medium term.

The Dow Jones Industrial Average .DJI rose 344.7 points, or 1.44 percent, to 24,274.85, the S&P 500 .SPX gained 35.28 points, or 1.34 percent, to 2,665.01 and the Nasdaq Composite .IXIC added 127.52 points, or 1.8 percent, to 7,215.68. pan-European FTSEurofirst 300 index .FTEU3 rose 0.66 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.86 percent. prices rose as global supplies remained tight and the market awaited news from Washington on possible new U.S. sanctions against Iran. crude CLcv1 rose $1.29 to settle at $69.72 a barrel while Brent LCOcv1 gained $1.25 to $74.87.

The U.S. dollar leaped to its highest levels this year against a basket of currencies despite disappointing U.S. employment data for April, before dropping back to trade little changed. dollar index .DXY rose 0.22 percent, with the euro EUR= down 0.28 percent to $1.1953.

The dollar has gained as investors bet that the Fed will continue raising rates while other central banks, including the European Central Bank, will act more slowly.

While the Fed is seen raising interest rates at least two more times this year, expectations of policy tightening from the ECB and the Bank of England are receding.

That has driven the difference between German and U.S. government bond yields to near the highest in nearly three decades, with the short-dated US2DE210=RR and long-dated US10DE10=RR "transatlantic spread" standing at 305 and 240 basis points respectively.

U.S. Treasury yields were little changed after dropping to multi-week lows, supported by U.S. equity gains. 10-year notes US10YT=RR last /32 in price to yield 2.9459 percent, from 2.946 percent late on Thursday.

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https://reut.rs/2IbES8d World FX rates in 2018

http://tmsnrt.rs/2egbfVh MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

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