Stocks open week higher as Fed picture seen mixed

Global stocks were higher on Monday (October 5th) while the dollar turned lower as investors took disappointing US jobs data as a sign the Federal Reserve will delay raising rates for a little while longer.

Friday’s non-farm payrolls report showed US employers added 142,000 jobs last month, short of expectations for more than 200,000. August’s figures were also revised lower, to 135,000 from an initial reading of 173,000, sending a warning signal about the health of the world’s largest economy.

Lacklustre factory output figures from the US also weighed, sending the dollar to its lowest in two weeks against the euro.

Minutes from the last Fed meeting are due to be released later this week, offering investors clues about the timing of a possible interest rate hike.

Asian shares rose on Monday, with the Nikkei up 1.6 per cent to close above the psychologically important 18,000 handle. The Bank of Japan meets to decide monetary policy this week and may choose to ease further.

European bourses were broadly higher, with the DAX up more than two per cent in morning trade.

The FTSE 100 in London posted a two per cent rise, led by mining stocks and an eight per cent gain for Glencore.

Oil producers also rose, with shares in Royal Dutch Shell and BP up four per cent as oil prices climbed.

In London, Brent added 1.3 per cent to trade at $48.77 a barrel, while US light crude added 1.25 per cent in New York to reach $46.11 a barrel.

Crude oil futures hit a one-week peak on Friday after a report showed the number of working US oil rigs fell to a five-year low last week.

Futures trading pointed to a higher open for Wall Street after the key indices delivered a strong finish last week. Higher oil prices, coupled with the weaker-than-expected jobs report, fuelled a rally on Friday that saw US stocks close up one per cent.

Gold fell, with December futures down 0.4 per cent in New York at $1,132.30

Silver was up slightly at $15.290 a troy ounce while copper futures for December delivery rose one per cent to $2.348 a pound.

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