| LONDON, March 10
LONDON, March 10 Stocks rose, the dollar was on
track for its fifth week of gains and crude oil rebounded from
recent lows on Friday ahead of closely watched U.S. payrolls
data which is expected to give the Federal Reserve the green
light to raise interest rates next week.
Nonfarm payrolls probably increased by 190,000 jobs last
month while employers boosted wages for workers, according to a
Reuters survey of economists.
A tighter labour market, stock market boom and rising
inflation amid a strengthening global economy have left some
economists expecting that the Fed could increase interest rates
much faster than is currently anticipated by financial markets.
"Global and local inflationary pressures could soon make
markets reprice Fed rate hike expectations going into 2018 and
beyond, which we think would be bullish for the USD," said
Morgan Stanley forex strategists in a note to clients.
The dollar index, which measures the greenback's
strength against a basket of major currencies, was little
changed, as the euro extended its overnight gains, but
held close to its highest levels since January.
The euro, and the regional banking index, enjoyed a lift
after European Central Bank head Mario Draghi's suggestion on
Thursday it was less necessary to prop up the market through
ultra-loose monetary policy.
Optimism about an economic recovery in Europe gaining
traction helped the regional benchmark equity index
claw back some of its weekly losses. The index rose 0.4 percent
helped by financials and energy shares.
Shares of Euro zone banks rose nearly two percent to
their highest in more than a year while BT Group jumped
more than 4 percent after the telecoms giant after ending a
two-year row with the UK regulator.
Futures on Wall Street were up 0.4 percent.
Investors globally pumped money into stocks for the tenth
straight week, according to the latest data from Bank of
America-Merrill Lynch and fund tracker EPFR.
The MSCI All-Country World index is less
than a percent below all-time highs.
Year-to-date equity fund inflows of $82 billion now outpace
the $80 billion into bond funds, the data showed, further
stoking talk of the "Great Rotation" out of fixed income into
In commodity markets, crude prices inched up after dropping
to their lowest in more than three months in the previous
session on worries about a global supply glut.
U.S. West Texas Intermediate crude was up 0.5 percent
while Brent crude rose 0.4 percent.
Gold fell below the key level of $1,200 an ounce on Friday
and was on track for its worst week in four months, pressured by
a stronger dollar.
(Reporting by Vikram Subhedar; Editing by Angus MacSwan)