US Stocks End At Records After Strong Jobs Data

While China and the US say they are close to signing off on a mini trade deal next month, there are worries about the chances of them reaching a long-term agreement AFP / Anthony WALLACE

Strong US jobs data and positive signals from the US and China on trade talks lifted most global stock markets Friday, with Wall Street ending at records.

US employers added 128,000 net new jobs last month, the Labor Department reported, much better than the 80,000 projected by analysts and in spite of the hit from the lengthy General Motors strike.

"The key takeaway from the report is that it is not emblematic of an economy that is on the brink of a recession," analyst Patrick O'Hare wrote at Briefing.com.

"On the contrary, it is emblematic of an economy that is expanding."

Major US stock indices gained around one percent, with the S&P 500 and Nasdaq finishing at records and the Dow within touching distance of a new all-time high.

Bourses in Europe also rose, while stock markets in Asia were mixed.

Investors also were cheered comments from US and Chinese officials reporting progress in the efforts to finalize the partial trade bargain that President Donald Trump announced three weeks ago.

Chinese Vice Premier Liu He on Friday spoke by telephone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, a call both sides described as "constructive."

However, details remained scarce and the positive statements were almost identical to those made last week.

The US-China trade war has been grinding on for more than a year, leaving investors bouncing between hopefulness and dread depending on the latest indications from both sides.

US non-farm payroll figures are tipped to move markets as investors seek clues regarding possible future interest rate cuts this year GETTY IMAGES NORTH AMERICA / JUSTIN SULLIVAN

But Friday's commentary helped give a lift to the oil market, with the US and European benchmarks winning more than three percent.

"It seems like the phase one deal is most likely going to get certified," said Ryan McKay of TD Securities. "Markets are trading with a bit of a risk-on to end the week."

Meanwhile, among companies reporting quarterly results, Exxon Mobil jumped 3.0 percent after posting better-than-expected profits, while Chevron edged up 0.1 percent on results that lagged expectations.

Fitbit, a wearable technology company, surged 15.5 percent after it agreed to be acquired by Google for $2.1 billion.

The move advances Google's expansion into hardware while Fitbit has struggled against rivals including Apple. Google's parent Alphabet climbed 1.1 percent.