A lower than expected rise in the number of jobs created in the U.S. during December had a negligible impact on stock markets and the dollar Friday as an upward revision to the previous month's figure reined in any disappointment, according to AP. In Europe, the FTSE 100 index of leading British shares was down 15.30 points, or 0.3 percent, at 6,004.21 while France's CAC-40 fell 7.46 points, or 0.2 percent, to 3,896.96. Germany's DAX was up 6.94 points, or 0.1 percent, at 6,988.33. In the U.S., the Dow Jones industrial average was up around 19.3 points, or 0.2 percent, at 11,716.61 soon after the open while the broader Standard & Poor's 500 index rose 2.31 points, or 0.2 percent, to 1,276.16. Stocks are trading a bit firmer than expected when the Labor Department reported that only 103,000 jobs were created in December. Though that was lower than consensus expectations for a 175,000 increase, a 70,000 improvement in November's gain meant the overall figure was more or less in line with expectations. The news that the U.S. unemployment rate dropped to a 19-month low of 9.4 percent from November's 9.7 percent helped calm any initial jitters. «The data breakdown is not as weak as the December headline suggests,» said Alan Ruskin, an analyst at Deutsche Bank. The figures, which often set the tone in markets for a week or two, had taken on greater significance following a survey on Wednesday by the ADP agency showing U.S. employers added a massive 297,000 private sector jobs in December. That was way up on November's 92,000 and significantly ahead of market expectations for a 100,000 increase. The U.S. jobs data will continue to be a central factor behind the performance of the U.S. economy and on the timing of the Federal Reserve's exit from super-easy monetary policy. While more jobs in the U.S. is good news because it signifies that the world's largest economy is growing faster than before, it may prompt the Fed to start withdrawing its monetary stimulus sooner than previously expected. As well as cutting its key interest rate to near zero percent, the Fed has authorized two massive money injections into the U.S. economy and is currently in the middle of a $600 billion effort. The payrolls figure also had little impact on the dollar, which was trading more or less where it was before the data's release _ the dollar has been buoyant since Wednesday on the back of a sharp spike in Treasury yields. That means that holding dollars is more attractive because the returns are potentially greater. «While today's report didn't deliver the gloss that investors might have hoped for, the Fed will be pleased to see an outright lower rate of those out of work,» said Andrew Wilkinson, senior market analyst at Interactive Brokers. By mid afternoon London time, the euro was 0.2 percent lower on the day at $1.2973 while the dollar was unchanged at 83.30 yen. Over recent days, Europe's debt crisis has taken a back seat to developments in the U.S., but higher European bond yields on Friday have focused investors' attention once again. Worries remain, not least in Portugal, which is widely considered to be the country most at risk in joining Greece and Ireland in seeking a financial bailout. The yields on its ten-year bonds have spiked up above to euro-era highs above 7 percent and towards the levels that forced the previous bailouts. Next week, Portugal is planning to sell more bond, as are Spain and Italy. «As yields creep up, it will be interesting to see what the markets appetite is for fresh issues,» said David Buik, markets analyst at BGC Partners. Earlier in Asia, Japan's Nikkei 225 stock average edged up slightly _ about 0.1 percent _ to finish at a fresh eight month high of 10,541.04. Japanese stocks are benefiting from the recent fall in the value of the yen, which has eased the pressures on the country's exporters as they battle for business in the international marketplace. Hong Kong's Hang Seng index lost 0.4 percent to 23,686.63, while South Korea's Kospi gained 0.4 percent to 2,086.20. Benchmark oil for February delivery rose 82 cents to $89.20 a barrel electronic trading on the New York Mercantile Exchange. The contract tumbled $1.92, or 2 percent, following two weeks of gains. -- SPA
