World markets rise as double-dip fears ease

 LONDON — World stock markets advanced modestly Monday as investors rode momentum from Friday, when an upbeat U.S. jobs report eased fears that the global economy could slip back into recession.

With Wall Street closed for a holiday, however, trading was expected to remain light.

Markets took heart after official data last week showed private employers in the U.S. added 67,000 jobs in August, more than analysts expected.

The figure bolstered optimism that the U.S. will maintain a slow but steady recovery from last year's recession and avoid another economic contraction later this year.

By mid-afternoon in Europe, Britain's FTSE 100 index was up 0.3 percent at 5,446.17, Germany's DAX was 0.3 percent higher at 6,153.31 and France's CAC-40 was up 0.3 percent at 3,684.20. Asian indexes closed higher and trading on Wall Street was to remain shut for Labor Day weekend after closing higher on Friday.

With most major governments reining in economic stimulus measures and many pushing through austerity spending cuts to reduce deficits, investors worry the global economy would be pushed into a double dip recession, particularly as the U.S. slows down quickly.

Because the U.S. economy is the world's largest and consumer spending there accounts for a fifth of global economic activity, the stronger-than-expected jobs data on Friday helped calm investors' frayed nerves after weeks of worrying indicators.

"The renewed flight to safety we have witnessed over the past month is overdone and risks an equally large reversal when the worries over a double dip subside," analysts from Rabobank said in a report.

"As the unexciting, steady and below-trend global recovery continues, it's important not to confuse it with a double dip recession."

Japan's benchmark Nikkei 225 stock index climbed 2.1 percent, or 187.19, to 9,301.32 and South Korea's Kospi rose 0.7 percent to 1,792.42.

Hong Kong's Hang Seng index added 1.8 percent to 21,355.77. Australia's S&P/ASX 200 gained 0.8 percent at 4,575.50. Markets in mainland China, Taiwan, India, Indonesia and Singapore were also higher.

The Dow Jones industrial average jumped 1.2 percent to close at 10,447.93 on Friday. The broader Standard & Poor's 500 Index rose 1.3 percent to 1,104.51.

Shares in the U.S. ended the week in the positive, the first time that has happened in a month. The early gains in September mark a stark turnaround from August trade, when shares fell on doubts about the global economic recovery.

The dollar fell to 84.24 yen from 84.27 yen on Friday. The euro was slightly lower at $1.2880 from $1.2895.

Benchmark oil for October delivery was down 40 cents at $74.20 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 42 cents to settle at $74.60 on Friday.

Noteworthy | Bats Global Markets had a record U.S. market share for August Read more: http://www.kansascity.com/2010/09/06/2203445/noteworthy-bats-global-markets.html#ixzz0ypySKXgE

 Bats Global Markets, a Lenexa-based electronic trading exchange, said it had a record U.S. market share for August of 10.6 percent and a high of 5.8 percent in Europe. The share of U.S. market trading for August dipped slightly from its 11 percent slice for July.

Done deal

Epiq Systems, which provides software for lawyers handling bankruptcy, litigation and other financial and regulatory matters, said it had successfully completed a nearly $30 million stock buyback. The company said it had repurchased roughly 2.3 million shares at an average price of $12.83.

Freaky speaker

“Freakonomics” co-author Stephen Dubner will be the featured speaker at Park University’s Xerox Global Business Lecture Series at 7 p.m. Oct. 7 at the Folly Theater. “Freakonomics,” written by Dubner and Steven Levitt, was published in 2005 and became a best-seller and cultural phenomenon with more than 4 million copies sold. The two later teamed on a sequel, ”Superfreakonomics.” Tickets for the lecture are $10 each and can be purchased at the Folly box office at 1020 Central

Crude Oil Falls for a Second Day on Speculation U.S. Fuel Demand Will Drop

 Oil declined to trade near a four- day low, as falling equity markets reinforced doubts about the global economic recovery while the end of the U.S. summer peak consumption season signaled lower demand from refiners.

Yesterday’s U.S. Labor Day holiday marked the end of the driving season. Refiners often idle units for maintenance in September and October as gasoline demand drops and before heating-oil use increases. The Stoxx Europe 600 Index fell as much as 0.7 percent. Asian stocks also declined, with the benchmark MSCI Asia Pacific Index snapping four days of gains.

“Weak Asian markets and the weak start in Europe are pushing oil lower,” Gerrit Zambo, a trader with Bayerische Landesbank, said from Munich.

Crude for October delivery dropped as much as $1.39, or 1.9 percent, to $73.21 a barrel in electronic trading on the New York Mercantile Exchange and was at $73.29 at 10:06 a.m. London time. Yesterday’s transactions will be booked with today’s trades for settlement purposes, as there was no floor trading on Labor Day.

Brent crude for October settlement declined 89 cents, or 1.2 percent, to $75.98 a barrel on the ICE Futures Europe Exchange in London.

Crude also dropped as the dollar gained for a second day against the 16-nation euro, reducing the appeal of commodities as an alternative investment. The U.S. currency was at $1.2769 to the European currency, up from $1.2876 yesterday in New York.

“Equities are weaker and the dollar is stronger, so for the next few days we’re likely to move in a $70-$75 range,” Frank Schallenberger, head of commodities research at Landesbank Baden-Wuerttemberg, said from Stuttgart.

Rising crude oil inventories in the U.S., the world’s biggest oil consumer, are also weighing on petroleum prices, Schallenberger said. U.S. stockpiles of crude are currently about 5 percent higher than a year ago.

Commodities: Oil retreats in subdued trading

LONDON (SHARECAST) - Crude oil futures fell on Monday with trading mostly subdued due to the US Labor Day holiday. 

While there was no floor trading during Monday’s holiday crude for October delivery fell 58 to $74.02 a barrel in electronic trading on the New York Mercantile Exchange. 

Concern about declining demand for oil drove prices lower, as the US driving season comes to an end. Monday’s Labor Day officially marked the end of the summer driving season. 

Unease about the struggling US economy and an oversupplied oil market is also weighing on oil demand. Crude inventory levels are now at the highest level since June, according to last week’s figures from the Energy Department. 

Traders will also be keeping an eye on Tropical Storm Hermine, which reached the Gulf of Mexico Monday evening US time. 

Gold for December delivery was little changed at $1,251.20 on the Comex division of the New York Mercantile Exchange. Floor trading was closed Monday for the US holiday.