Oil prices rose further Friday on fears Israel could strike Iranian crude facilities, while global stock markets mostly advanced on signs of continued strength in the US economy.
The US economy added 254,000 jobs last month — more than August, which itself was revised higher — way above expectations. The unemployment rate fell to 4.1 percent.
The Dow was little changed in late morning trading, while the wider S&P and the tech-heavy Nasdaq inched higher.
In Europe, London ended the day flat, with Paris and Frankfurt closing higher.
The positive US jobs report eased concerns about a slowing labour market, but is not likely to stop the Federal Reserve from continuing to trim interest rates now that inflation is coming under control, analysts said.
It probably does rule out a full 50-basis-points cut at the central bank’s meeting next month, they said.
“With data coming in significantly stronger than anticipated, the Fed is likely to continue cutting rates at a slow and steady pace, with a 25-basis-point reduction in the November meeting being the most probable outcome,” said Mahmoud Alkudsi, analyst at ADSS.
The dollar rose after the jobs report, which “put the nail in the coffin for talk” of another 50 basis point cut, said Fawad Razaqzada, analyst at City Index and FOREX.com.
In more good news for the US economy, dockworkers on the East and Gulf Coast will start returning to work after unions and port operators reached a tentative pay deal late Thursday to end a strike that threatened repercussions on prices and trade.
In Paris, shares in video game publisher Ubisoft closed more than 30 percent higher after a media report suggested China’s Tencent was poised to join the company’s founding family to launch a potential buyout.
Oil continued to rise, with the price of a barrel up more than 10 percent so far this week.
Escalating assaults by Israel on Hezbollah positions in Lebanon come as it weighs retaliation for Iran’s barrage of missiles fired at the country.
Crude prices rocketed around five percent Thursday when US President Joe Biden said he was “discussing” possible Israeli strikes on Iranian oil sites in retaliation for Tehran’s barrage.
But analysts warned that slowing demand in many countries and plentiful supply within and outside OPEC is likely to eventually cap prices.
“While geopolitical risks are firmly in the spotlight at present, one should not forget the fundamental oil market drivers waiting in the wings, which are not supportive of a persistently higher oil price,” said David Oxley, commodities economist at Capital Economics.
Hong Kong shares rose after a pause Thursday to the rally that started last week when Beijing unveiled economy-boosting measures.
The stimulus — mainly targeting the property sector — has seen stocks in the city and mainland China enjoy a blistering run of more than 20 percent on hopes that Beijing can reignite growth.
Hong Kong’s Hang Seng Index closed up almost three percent Friday, with tech firms leading the charge. Mainland Chinese markets were closed for the Golden Week holiday.
– Key figures around 1540 GMT –
Brent North Sea Crude: UP 0.8 percent at $78.21 per barrel
West Texas Intermediate: UP 0.8 percent at $74.26 per barrel
New York – Dow: FLAT at 41,997.27 points
New York – S&P 500: UP 0.1 percent at 5,705.71
New York – Nasdaq Composite: UP 0.4 percent at 17,983.05
London – FTSE 100: FLAT at 8,280.63 (close)
Paris – CAC 40: UP 0.9 percent at 7,541.36 (close)
Frankfurt – DAX: UP 0.6 percent at 19,120.93 (close)
Hong Kong – Hang Seng Index: UP 2.8 percent at 22,736.87 (close)
Tokyo – Nikkei 225: UP 0.2 percent at 38,635.62 (close)
Shanghai – Composite: Closed for a holiday
Pound/dollar: DOWN at $1.3106 from $1.3124 on Thursday
Euro/dollar: DOWN at $1.0966 from $1.1029
Euro/pound: DOWN at 83.69 pence from 84.03 pence
Dollar/yen: UP at 148.50 from 146.92 yen
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