Stocks Buoyed by Strong U.S. Jobs Report

Global stocks started the week with gains after Friday's strong U.S. jobs report boosted confidence in the world's largest economy and heightened expectations that the Federal Reserve would raise interest rates in December.

The Stoxx Europe 600 was up 0.8% in early trade, rebounding from sharp losses late last week. European stocks had tumbled Thursday and Friday after the European Central Bank announced less aggressive stimulus measures than markets had expected.

Last week's losses "reflected a massive overreaction" to ECB policy, said Ben Kumar, investment manager at Seven Investment Management.

On Friday, ECB President Mario Draghi sought to reassure investors that the central bank would "no doubt" step up stimulus measures if needed.

Stocks also got a boost from Friday's sharp rally on Wall Street, where major indexes bounced back as a stronger-than-expected U.S. jobs report helped to coalesce sentiment about the Fed's plans to start raising rates at its Dec. 15-16 meeting.

The Dow industrials rose 2.1% to cap a tumultuous week, pushing the index back into positive territory for the year.

"I think everyone believes payrolls data Friday was the last thing that could change the Fed's mind," Mr. Kumar said. "We're all set for a rate rise."

Japan's Nikkei-225 Stock Average joined the rally on Monday to close 1% higher.

Still, concerns about Chinese data due later in the week and a fall in energy stocks kept a lid on gains in Asia. Australia's S&P/ASX 200 ended 0.1% higher and the Shanghai Composite added 0.3%.

In commodities, Brent crude was down 0.3% at $42.90 a barrel. The Organization of the Petroleum Exporting Countries on Friday ended a meeting without an agreement to restrain production, weighing on oil prices.

Gold was slightly higher at $1,084 an ounce.

In currencies, the euro was down 0.2% against the dollar at $1.0860, while the dollar was up 0.1% against the yen at ¥ 123.27.

In equity markets, gains in Europe were led by the health-care sector, with Roche Holding AG up 1.2% and Novo Nordisk up 1.6%.

Oil and gas shares dragged on broader gains. BP PLC was down 1.9%, Royal Dutch Shell PLC was down 1.7% and Total SA was down 1.4%.

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

December 07, 2015 04:15 ET (09:15 GMT)

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