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Market Buzz: World stocks rally following upbeat data from US

Market Buzz: World stocks rally following upbeat data from US
Russian floors started off Monday trading higher, following gains on Wall Street on Friday after the government released better-than-expected jobs data.

On Friday, June 7, Russian floors ended the week with gains: The MICEX advanced 2.05 percent to close at 1,343.90 and the RTS climbed 2.14 percent to end at 1,314.41.

European shares also closed sharply higher on Friday after the US government's employment report showed that employers added slightly more jobs than expected in May.

The Stoxx Europe 600 index jumped 1.3 percent to close at 295.40. The German DAX 30 rose 1.9 percent to 8,254.68. On Friday, Germany's Bundesbank cut its growth outlook for Germany for 2013 and 2014 after the European Central Bank again forecasted a eurozone recovery to begin later this year. However, Friday’s industrial data for Germany beat expectations, with April’s figure up 1.8 percent from March.

The UK’s FTSE 100 index gained 1.20 percent Friday to close at 6,411.99, while France’s CAC 40 index closed 1.5 percent higher ending at 3,872.59.

European shares are expected to open lower on Monday. On June 10, Switzerland will publish its official data on retail sales and the government's measure of consumer spending. France will also release data on industrial production.

US floors edged up Friday following the optimistic data releases. The Dow Jones Industrial Average rose 1.38 percent to close at 15,248, the S&P 500 rose 1.28 percent to 1,643, and the Nasdaq Composite climbed 1.32 percent to 3,469.

One key factor closely watched by global investors was the US jobs report. Federal Reserve Chair Ben Bernanke has repeatedly said that consistent improvement in the labor market would mean that the central bank could start tapering off its bond-buying stimulus program.

Non-farm payrolls climbed by 175,000 jobs in May, against 149,000 new jobs added in April. The report beat economists’ expectations, which predicted 159,000 new jobs would be added in May. Private payrolls rose by 178,000 in May, compared to 157,000 in April. The consensus forecast said 175,000 new private jobs would be added in May.

Asian markets rose Monday on strong US jobs data: Tokyo’s Nikkei 225 advanced 3.8 percent to 13,363.18, while Hong Kong’s Hang Seng fell 0.4 percent to 21,509.91. Markets in China and Australia were closed for holidays.

WTI oil rose slightly Monday, extending gains posted late last week, and is currently around $96.2. Brent futures rose towards $105 per barrel on Monday, and crude oil is currently trading at $104.3.