In European Equity Markets indices traded higher Friday as disappointing U.S. nonfarm payroll figures boosted speculation of an interest rate cut from the Federal Reserve. The pan-European Stoxx 600 was up 1% during the afternoon session, technology stocks leading gains with a more than 2% rise as all sectors traded in positive territory. Danish biotech giant Novozymes fell nearly 7% after it downgraded its outlook, while shares of Dutch insurer ASR Nederland climbed to the top of the Stoxx 600 with an almost 7% rise.
In Currency Markets sterling rose to a two-week high on Friday after weak U.S. jobs data weighed on the dollar and bolstered the case for a Federal Reserve interest rate cut. The pound is on course for its first weekly gain in five, helped mostly by an ailing dollar rather than because traders feel more confident that Britain can avoid a no-deal Brexit. Sterling rose 0.4% to $1.2757, its highest since May 21 and leaving it up 0.8% this week after four consecutive weeks of losses. Against the euro the British currency has struggled, too, and failed to make much of a recovery this week.
In Commodities Markets oil prices rose on Friday, climbing further from five-month lows hit this week amid signs that OPEC and other producers could extend their output reduction deal. Brent crude futures were up 60 cents at $62.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained 59 cents to $53.18. Oil prices jumped after Saudi Energy Minister Khalid al-Falih told a conference in St Petersburg, Russia, that $60 a barrel was too low to encourage investment in the industry. Crude later pared gains.
In US Equity Markets stocks extended gains in a broad-based rally on Friday, as a sharp slowdown in May domestic job growth raised hopes of an interest rate cut, while the United States’ decision to delay tariffs on Chinese goods lifted the mood. The S&P 500 was up 0.78%, at 2,865.72. The Nasdaq Composite rose 1.02%, at 7,693.05. Beyond Meat Inc shares surged 25.9% after the maker of plant-based burgers and sausages said it expects to more than double its revenue and report breakeven EBITDA this year.
In Bond Markets U.S. Treasury yields tumbled on Friday, with 10-year yields hitting their lowest since September 2017 as domestic employers hired far fewer workers than expected in May, raising bets the Federal Reserve would lower interest rates. Yields on U.S. 10-year Treasury notes were 5.60 basis points lower at 2.067%. They touched 2.053% after the payrolls report, their lowest since September 2017. Two-year yields were 7.80 basis points lower at 1.803%. They fell to 1.775%, which was just above their lowest since December 2017.