US adds 292,000 jobs, markets expect gains

London (AP) — Bumper U.S. jobs figures for December helped stock markets in Europe and Wall Street futures add to earlier gains Friday.

Keeping score: In Europe, the FTSE 100 index of leading British shares was up 0.9 percent at 6,005 while Germany's DAX rose 1.1 percent to 10,091. The CAC-40 in France was 0.6 percent higher at 4,428. Wall Street was poised for a solid open, with Dow futures and the broader S&P 500 futures up 1.3 percent.

Strong payrolls: The market gains, which had roots in the solid Chinese trading session earlier, was aided by the U.S. jobs data. The Labor Department reported that the U.S. economy added 292,000 jobs in December, suggesting that the U.S. economy is so far defying global trends and growing at a solid pace. It also said the unemployment rate remained 5 percent for a third straight month. The figures are likely to cement market expectations that the Federal Reserve will continue to raise interest rates this year following its decision in December to increase its main rate for the first time in nearly a decade.

Analyst take: "It's far too soon to know definitively if Fed Chair Janet Yellen made the right decision in raising interest rates last month," said Dennis de Jon, managing director at UFX.com. "However, December's well above expected non-farm payroll figures will confirm her assessment that the world's biggest economy is in rude health."

Dollar bounce: The dollar firmed further following the figures as traders priced in the prospect of more interest rate hikes: The euro was down 0.8 percent at $1.0825 while the dollar was 0.6 percent stronger at 118.51 yen.

China relief: Investors around the world were relieved Friday by a steadier tone in Chinese trading. The benchmark Shanghai Composite Index rose 2 percent to 3,186.41 a day after trading was suspended following a 7 percent plunge. Worries about China have been fueled by soft economic data. Those fears have drowned out signs that the United States and Europe are doing fairly well.

Asia's day: In other Asian markets, Hong Kong's Hang Seng advanced 0.6 percent to 20,453.71 and South Korea's Kospi added 0.7 percent to 1,917.62. Japan's Nikkei 225 lost 0.4 percent to 17,697.96 and Australia's S&P/ASX 200 shed 0.4 percent to 4,990.80. India's Sensex added 0.6 percent to 25,009.80 and Taiwan and Singapore also advanced.

Oil: In energy trading, U.S. crude sank Thursday to its lowest level in 12 years on fears Chinese demand might weaken. The benchmark U.S. contract rebounded moderately Friday, rising 19 cents to $33.46 in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 39 cents to $34.14 a barrel in London.

Copyright 2016 The Associated Press.

The Gayly – January 8, 2016 @ 8:20 a.m.