European and US stock markets surged on Friday after a strong US jobs report allayed fears of a slowdown in the world's biggest economy.
The broad-based S&P 500 jumped 1.5 percent to 2,129.90, less than one point below the record set in May 2015, after the Department of Labor reported that the US economy added a surprisingly robust 287,000 jobs in June.
European bourses also rallied, welcoming the US jobs data, as well as reassurances from leading Italian banks that they could withstand an economic shock.
The US report, which came in at 112,000 more jobs than expected in June, showed the strongest hiring in the health care, hospitality, information and retail sales sectors.
The figures were a huge improvement over the paltry 11,000 jobs added in May that analysts had viewed as a red flag for a potential recession.
Analysts said the data was especially welcome after the surprise vote by Britain to leave the European Union. Those concerns grew this week as government bond yields in many countries sank to all-time lows, often a sign of a slowing economy.
"Domestically, we're not concerned about recession," said Art Hogan, chief market strategist at Wunderlich Securities.
On Friday, the 10-year US treasury yield spiked to above 1.40 percent just after the jobs report, before falling back near record lows at 1.37 percent as investors continued to seek out safe investments.
Hogan said bond-buying in the US is being fed by global investors seeking yield as government bonds in their own countries are sold at zero or negative yield. That trend is further boosted by expectations that central banks will soon enact even more stimulus.
"We've got a liquidity issue, not necessarily an economic slowdown issue," Hogan said.
- European markets rise -
Frankfurt and Paris exchanges both rose around two percent, while London climbed 0.9 percent.
Analysts said the European market was boosted by expectations the European Central Bank will boost stimulus following the Brexit vote.
The International Monetary Fund cut its growth forecast for the eurozone in 2017 to 1.4 percent, from the prior estimate of 1.6 percent, citing Brexit.
In Milan, banking shares rose sharply after Banco Popolare reported that internal stress tests had confirmed its capacity to resist external shocks.
Banco Popolare rose 18 percent, with other banks posting double-digit percentage rises.
Another leading Italian bank, Banca Popolare dell'Emilia Romagna SC, rose 16 percent as its chief executive said its stress tests were going well, Bloomberg reported.
In Asia, Tokyo fell 1.1 percent, its fourth straight loss, as worries about the strengthening yen continued to weigh on sentiment.
In currency trade the dollar was at 100.47 yen against 100.76 yen late Thursday in New York. Traders are trying to guess whether Japanese officials will step in to halt the yen's rise, which threatens profits at the country's exporters.
But Japanese game company Nintendo rocketed up nearly nine percent as its new smartphone game, Pokemon GO, debuted at the top of gaming charts.
- Key figures around 2100 GMT -
New York - DOW: UP 1.4 percent at 18,146.74 (close)
New York - S&P 500: UP 1.5 percent to 2,129.90 (close)
New York - Nasdaq: UP 1.6 percent to 4,956.76 (close)
London - FTSE 100: UP 0.9 percent at 6,590.64 (close)
Frankfurt - DAX 30: UP 2.2 percent at 9,629.66 (close)
Paris - CAC 40: UP 1.8 percent at 4,190.68 (close)
EuroStoxx: UP 2.1 percent at 2,838.01 (close)
Tokyo - Nikkei 225: DOWN 1.1 percent at 15,106.98 (close)
Hong Kong - Hang Seng: DOWN 0.7 percent at 20,564.17 (close)
Shanghai - Composite: DOWN 1.0 percent at 2,988.09 (close)
Euro/dollar: DOWN at $1.1054 from $1.1065 Thursday
Dollar/yen: DOWN at 100.47 yen from 100.76 yen
Pound/dollar: UP at $1.2954 from $1.2915
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http://timesofindia.indiatimes.com/business/international-business/Strong-jobs-report-lifts-US-European-stocks/articleshow/53123951.cms
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