World shares highest since 2008
World shares hit their highest level since June 2008 and the dollar touched a fresh 3-1/2-year high against the yen on Friday. China also gave markets a boost as official data showed February exports grew 21.8 per cent versus a year ago, more than double the expected rise.
World equity markets rallied and the dollar strengthened on Friday after an unexpectedly sharp jump in US employment in February added to investor sentiment that the world’s biggest economy is gaining traction. Wall Street pushed the Dow index to a fourth consecutive intraday record high, while European shares extended their gains to a session high on the increase in hiring, which pushed the US unemployment rate to a four-year low of 7.7 per cent.
The dollar touched a 3-1/2-year high against the yen and a three-month peak against the euro, while US Treasuries sank on the payrolls report. Non-farm payrolls surged by 236,000 jobs in February, the US labour department said, handily beating economists’ expectations for a gain of 160,000. “The US economy just hit it out of the park. The February non-farm payrolls data was expected to show the economy moving forward slowly but surely, not fast-forward like this,” said Jason Conibear, trading director at forex specialists Cambridge Mercantile in Toronto.
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