By Stephen Culp
NEW YORK, Apr 5 (Reuters) – Global stocks approached new all-time highs on Monday, thanks to strong economic data that increased risk appetite and added pressure on Treasuries for fear that the Federal Reserve would start to raise interest rates earlier than expected.
* Friday’s labor data, which showed an increase of 916,000 jobs in March and a drop in the unemployment rate to 6% in the United States, thanks to the acceleration of the vaccination campaign and the stimulus, marked the beginning of what could be the best annual economic performance in decades.
* There was further evidence of the recovery on Monday, as the Institute for Supply Management (ISM) non-manufacturing PMI report hit a new record.
* “Friday’s employment figure and non-manufacturing ISM data show growing economic strength, raising concerns about the possibility that the Fed will have to raise interest rates,” said Tim Ghriskey, chief investment strategist at Inverness Counsel, New York.
* As of 1508 GMT, the Dow Jones Industrial Average was up 383.15 points, or 1.15%, at 33,534.58; the S&P 500 index added 51.56 points, or 1.28%, to 4,071.59 units; and the Nasdaq Composite Index advanced 170.20 points, or 1.26%, to 13,648.04.
* The European and Australian stock exchanges were closed on the day for the Easter holidays, while the Chinese stock market did not open its doors on the occasion of the celebration of Tomb Cleaning Day.
* MSCI’s global stock measure was up 0.90%.
* Emerging market stocks were up 0.02%. MSCI’s broader index of Asia Pacific equities excluding Japan closed slightly down 0.01%, while the Japanese Nikkei advanced 0.79%.
* Yields on most Treasuries rose on a day of volatile trading, fueled by continued optimism about the US economic outlook following Friday’s powerful jobs report.
* Benchmark 10-year notes were down 1/32 in price, yielding 1.727%, down from 1.72% on Friday. The 30-year papers were down 14/32 in price, with a return of 2.387%, from 2.37% on Friday.
* The dollar was hitting week-long lows against a basket of six major currencies as Wall Street indices soared and analysts hoped for a new catalyst to drive one direction.
* The dollar index was down 0.45% and the euro was up 0.35% at $ 1.1803. The yen was up 0.58% at 110.10 per dollar, and the British pound improved 0.48% at $ 1.3896.
* Crude prices plummeted around 3% on increased OPEC + supply and production from Iran that offset hopes of a rebound in demand driven by the economic recovery.
* On the other hand, spot gold prices fell 0.2% to $ 1,728.57, as the bullion lost some shine due to the rise in the stock markets.
(Additional reporting by Hideyuki Sano and Gertrude Chavez; edited in Spanish by Carlos Serrano)