Published: Sat, June 03, 2017
Economy | By Melissa Porter

Stocks set to end the week at all-time highs

"Since January, the unemployment rate has declined by 0.5 percentage point, and the number of unemployed has decreased by 774,000", the BLS said.

The common currency had risen to a nine-day high of $1.1257 on Thursday and was still poised for a 0.4 percent weekly gain.

The dollar recovered more ground against the yen on Friday ahead of USA jobs data that should, judging by the rhetoric of United States central bankers, cement a rise in Federal Reserve interest rates later this month.

Stock markets celebrated a separate report from payroll processing firm ADP out Thursday that said non-farm private employment rose by a seasonally adjusted 253,000 in May, above forecasts for an increase of 185,000.

"Should we see the earnings begin to decline, I do think the market will have trouble", Arone said.

Stocks in Europe joined the party with euro zone blue-chips up 0.9 per cent and UK's FTSE 100 up 0.4 per cent and hovering near its highest-ever levels.

A stronger dollar and broadly buoyant global stock markets dented appetite for safe-haven gold, which hit its lowest levels in a week. The index hit a two-and-a-half-year high of 57.7 in February amid optimism over President Donald Trump's pro-business policy proposals. The S&P 500 gained 3 points, or 0.12 percent, to 2,433.06 and the Nasdaq Composite added 30.10 points, or 0.48 percent, to 6,276.93.

The unemployment rate ticked down to a new post-recession low of 4.3%, while participation in the labor force fell to 62.7% from 62.9%. The hawkish Fed member already said at the end of May that a hike in June was a "distinct possibility" and that a total of three hikes this year would be appropriate.

The spectre of solid USA growth led traders to nearly fully price in chances that the Federal Reserve will raise interest rates at its June 13-14 policy meeting.

10 companies insiders are buying and sellingThe dollar index was little changed although the greenback was up 0.1 per cent against the yen.

Following sizable revisions downward in the March and April jobs reports, it may be time to suggest that President Donald Trump's campaign promise to bring jobs back to the USA has disappointed. WTI slipped to $47.48 a barrel while Brent crude dropped to $49.73 a barrel.

In London, the FTSE 100 had climbed more than 50 points to touch a new all-time high of 7599 earlier in the session, but the steam later came out of the rally and it was dampened further by the USA figures.

US 10-year Treasuries rose 14/32 in price to push their yields down to 2.1678 percent.

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