Monday, Aug 03, 2020 | Last Update : 09:25 PM IST

132nd Day Of Lockdown

Maharashtra44122827680915576 Tamil Nadu2576131964834132 Andhra Pradesh158764828861474 Delhi1376771233174004 Karnataka134819577252496 Uttar Pradesh92921533571730 West Bengal75516527301678 Telangana6766048609551 Gujarat63675466892482 Bihar5727036637322 Rajasthan4441031216706 Assam4290532385105 Haryana3651929690433 Odisha3491321955236 Madhya Pradesh3353523550886 Kerala259121446383 Jammu and Kashmir2141613127396 Punjab1785311466423 Jharkhand121884513115 Chhatisgarh9608699158 Uttarakhand7593443786 Goa6530466853 Tripura5248346323 Puducherry3806230952 Manipur283117377 Himachal Pradesh2654150813 Arunachal Pradesh19359693 Nagaland19356484 Chandigarh111769819 Meghalaya8742645 Sikkim6582891 Mizoram4702580
  Business   Market  08 Jun 2020  Global shares advance on surprise recovery in US employment

Global shares advance on surprise recovery in US employment

Published : Jun 8, 2020, 10:12 am IST
Updated : Jun 8, 2020, 10:12 am IST

Labor Department’s employment report showed that jobless rate falling to 13.3% last month from 14.7% in April, a post-World War Two high

 Global shares advance on surprise recovery in US employment . (AFP Photo)
  Global shares advance on surprise recovery in US employment . (AFP Photo)

TOKYO: Global share prices edged higher on Monday after a surprise recovery in U.S. employment provided cause for optimism that global economies could quickly revive after many weeks of lockdowns aimed at controlling the coronavirus pandemic.

Oil prices erased earlier gains to stand almost flat after OPEC and its allies, including Russia, agreed to extend record oil production cuts until the end of July.


U.S. S&P 500 futures rose as much as 0.8% to stand near their highest since late February before giving up a bulk of gains to last stand up 0.2% while Japan's Nikkei rose 0.9%.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3%, extending its bull run to an eighth consecutive day.

U.S. nonfarm payrolls rose by 2.509 million jobs last month - in contrast with consensus estimates of a fall of 8 million jobs after a record plunge of 20.687 million in April.

The Labor Department’s closely watched employment report also showed the jobless rate falling to 13.3% last month from 14.7% in April, a post-World War Two high. Economists had forecast the rate jumping to 19.8%.


The promising data raised hopes of a quick economic recovery as governments around the world ease social restrictions to stem the virus.

“Lockdowns are getting lifted around the world and I can see how that is cheering up the mood. But on the other hand, you can’t keep pushing up multiples forever,” said Masaru Ishibashi, joint general manager of trading at Sumitomo Mitsui Bank.

“I think many market players are scratching their head as to how to interpret markets these days.”

The jobs data also bumped up U.S. bond yields, with the 10-year Treasuries yield rising to as high as 0.959% on Friday, a level last seen in mid-March. It last stood at 0.897%.


The sharp gains in U.S. bond yields over the past couple of days put more focus on the U.S. central bank, which will hold a two-day policy meeting ending on Wednesday.

Federal Reserve Chair Jerome Powell has said the U.S. economy could feel the weight of the economic shutdown for more than a year.

Chinese trade data published on Sunday also revealed the impact from the coronavirus crisis.

Exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.

Oil prices gave up big gains from earlier in the session as optimism over a deal by major crude producers to extend record output cuts gave way to disappointment that the accord didn’t extend beyond the end of July.


Brent crude climbed to as high as $43.41 a barrel before slipping back to $42.65 per barrel. U.S. crude futures stood at $39.74 after having risen to $40.44.

Both hit their highest since March 6.

“The market has been rallying on hopes of economic re-openings but the actual oil demand has not risen that much yet. In a way, the market is supported by a flood of liquidity,” said Tatsufumi Okoshi, senior commodity economist at Nomura Securities, refering to monetary easing around the world since March.

Tags: global shares, global share prices, us employment, global economies, covid-19 lockdown, coronavirus pandemic
Location: Japan, Tokyo-to, Tokyo