Monday, October 05, 2015 10:37:39 AM
Why gosh, I'm just totally shocked!!! 
Markets Gain on Expectations of U.S. Interest Rates Remaining Low
DOW JONES & COMPANY, INC. 9:46 AM ET 10/05/15
Global stocks rose Monday with some investors expecting U.S. interest rates to remain low after disappointing U.S. employment data last week.
The Dow Jones Industrial average climbed 149 points, or 0.9%, in early trade to 16621. The S&P 500 was up 1.0% and the Nasdaq rose 0.9%.
The Stoxx Europe 600 was up 2.8%, led by gains in energy stocks that were buoyed by steadying oil prices.
"The weekend has given traders the time to digest the weaker-than-expected jobs report on Friday and it seems we are back with 'bad news is good news' for the equity markets," said Jonathan Sudaria, night dealer at London Capital Group.
Ultralow interest rates have boosted stock markets for several years. Labor market strength is one of the factors the U.S. Federal Reserve looks at when deciding whether to raise interest rates.
U.S. Federal Reserve Bank of Boston President Eric Rosengren said Saturday that his confidence that the central bank can raise rates soon had fallen after a jobs report Friday came in well below economists' expectations.
The yield on 10-year U.S. Treasurys rose slightly to 2.022% Monday, according to Tradeweb, having fallen by 0.05 of a percentage point on Friday. Yields rise as prices fall.
In Europe, Germany's DAX was up 2.9%. France's CAC index rose 3.5%, while the U.K.'s FTSE 100 climbed 2.3%. The euro was up 0.1% against the dollar at $1.1213.
Financial markets rising reflect investor expectations that the Federal Reserve will delay raising interest rates off rock bottom, said Tim Crockford, a fund manager at Hermes Investment Management.
"The Fed still remains the main provider of liquidity to markets. It definitely has an effect on equities and all asset prices," said Mr. Crockford, whose firm oversees over GBP29 billion in assets.
Shares in European energy companies were up nearly 5% following a rebound in the oil price late Friday that continued into Monday. Brent crude stands at $49.85 per barrel, up over 5% from a week ago.
Basic resources companies also saw large gains led by mining giant Glencore PLC, which was up over 14%. Shares in Glencore have been volatile in recent times due to concerns over the group's finances amid falling commodities prices.
In Asia, Hong Kong's Hang Seng and Japan's Nikkei 225 both ended up 1.6%. Stock markets in mainland China were closed for a holiday.
Some investors said they expected more stimulus from Beijing following weak economic data in the region. The World Bank downgraded its economic growth forecasts for the East Asia and Pacific region, and China's expected growth rate was cut to 6.9% from 7.1%.
Global markets have been choppy since fears grew over a slowdown in the Chinese economy and its impact on global growth. The Stoxx 600 is up over 1% from a month ago, but is down nearly 7% from three months ago.
Yasu Kinoshita, a fund manager at RWC Partners, said that market volatility is a result of investors grappling with the changing outlook in China and a U.S. economy which is growing at a rate more sluggish than expected.
"We are quite ready for that volatility to continue for some time," said Mr. Kinoshita, whose firm oversees $11.4 billion in assets. "This will create very good buying opportunities."
Investors in Europe were also considering the results of Portugal's elections. Prime Minister Pedro Passos Coelho, who oversaw years of unpopular austerity measures, finished far ahead of his Socialist rival, but his center-right coalition lost its majority in Parliament.
Mr. Passos Coelho said he would seek an accord with the Socialists to allow him to form a minority government and pass the legislation needed to sustain Portugal's recovery.
Write to Christopher Whittal at christopher.whittal@wsj.com and Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
10-05-150946ET
Copyright (c) 2015 Dow Jones & Company, Inc.
Markets Gain on Expectations of U.S. Interest Rates Remaining Low
DOW JONES & COMPANY, INC. 9:46 AM ET 10/05/15
Global stocks rose Monday with some investors expecting U.S. interest rates to remain low after disappointing U.S. employment data last week.
The Dow Jones Industrial average climbed 149 points, or 0.9%, in early trade to 16621. The S&P 500 was up 1.0% and the Nasdaq rose 0.9%.
The Stoxx Europe 600 was up 2.8%, led by gains in energy stocks that were buoyed by steadying oil prices.
"The weekend has given traders the time to digest the weaker-than-expected jobs report on Friday and it seems we are back with 'bad news is good news' for the equity markets," said Jonathan Sudaria, night dealer at London Capital Group.
Ultralow interest rates have boosted stock markets for several years. Labor market strength is one of the factors the U.S. Federal Reserve looks at when deciding whether to raise interest rates.
U.S. Federal Reserve Bank of Boston President Eric Rosengren said Saturday that his confidence that the central bank can raise rates soon had fallen after a jobs report Friday came in well below economists' expectations.
The yield on 10-year U.S. Treasurys rose slightly to 2.022% Monday, according to Tradeweb, having fallen by 0.05 of a percentage point on Friday. Yields rise as prices fall.
In Europe, Germany's DAX was up 2.9%. France's CAC index rose 3.5%, while the U.K.'s FTSE 100 climbed 2.3%. The euro was up 0.1% against the dollar at $1.1213.
Financial markets rising reflect investor expectations that the Federal Reserve will delay raising interest rates off rock bottom, said Tim Crockford, a fund manager at Hermes Investment Management.
"The Fed still remains the main provider of liquidity to markets. It definitely has an effect on equities and all asset prices," said Mr. Crockford, whose firm oversees over GBP29 billion in assets.
Shares in European energy companies were up nearly 5% following a rebound in the oil price late Friday that continued into Monday. Brent crude stands at $49.85 per barrel, up over 5% from a week ago.
Basic resources companies also saw large gains led by mining giant Glencore PLC, which was up over 14%. Shares in Glencore have been volatile in recent times due to concerns over the group's finances amid falling commodities prices.
In Asia, Hong Kong's Hang Seng and Japan's Nikkei 225 both ended up 1.6%. Stock markets in mainland China were closed for a holiday.
Some investors said they expected more stimulus from Beijing following weak economic data in the region. The World Bank downgraded its economic growth forecasts for the East Asia and Pacific region, and China's expected growth rate was cut to 6.9% from 7.1%.
Global markets have been choppy since fears grew over a slowdown in the Chinese economy and its impact on global growth. The Stoxx 600 is up over 1% from a month ago, but is down nearly 7% from three months ago.
Yasu Kinoshita, a fund manager at RWC Partners, said that market volatility is a result of investors grappling with the changing outlook in China and a U.S. economy which is growing at a rate more sluggish than expected.
"We are quite ready for that volatility to continue for some time," said Mr. Kinoshita, whose firm oversees $11.4 billion in assets. "This will create very good buying opportunities."
Investors in Europe were also considering the results of Portugal's elections. Prime Minister Pedro Passos Coelho, who oversaw years of unpopular austerity measures, finished far ahead of his Socialist rival, but his center-right coalition lost its majority in Parliament.
Mr. Passos Coelho said he would seek an accord with the Socialists to allow him to form a minority government and pass the legislation needed to sustain Portugal's recovery.
Write to Christopher Whittal at christopher.whittal@wsj.com and Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
10-05-150946ET
Copyright (c) 2015 Dow Jones & Company, Inc.
ANTS suck!
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