NEW YORK (Reuters) - The dollar rose and global equity markets soared on Friday after data showed U.S. job growth increased by the most in 10 months in November, putting to rest recession fears and briefly taking the spotlight off contentious U.S.-China trade talks.
U.S. Treasury and German bund yields jumped, while gold slipped as much as 1%, reflecting increased investor appetite for risk as U.S. unemployment dipped to 3.5%, the lowest in nearly half a century.
The stronger-than-expected Labor Department data showed steady wage gains remained near their strongest in a decade, suggesting consumers will continue to drive the longest economic expansion in U.S. history, now in its 11th year.
The improving data would appear to validate the Federal Reserve’s decision in October to signal, after three interest rate cuts this year, that no more are needed for now.
“This certainly contributes to the idea that the U.S. economy is doing better than most folks would give it credit for,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
“This was a very solid report and should put those fears of recession firmly in the rear view,” he said.
MSCI’s gauge of stocks across the globe gained 0.84%.
European equities rallied, with the pan-regional STOXX 600 index rising 1.16%. Most major regional indices closed more than 1% higher.
Shares on Wall Street rose as the report bolstered the consensus view that consumer strength will support the U.S. economy and in turn, equities.
The Dow Jones Industrial Average rose 343.72 points, or 1.24%, to 28,021.51. The S&P 500 gained 30.37
