European stocks closed higher on Friday but still posted weekly losses, with Spain's Ibex leading the declines. A soft U.S. jobs report briefly pulled Treasury yields lower before they reversed higher, while U.S. equities held their gains into the close.
Germany's DAX closed up 1.13% at 25,222.05 on Friday. It held up best over the week with a 0.73% decline. France's CAC finished 0.79% higher at 7,897.20, yet still posted a 2.24% weekly drop. Britain's FTSE 100 rose 0.32% to 10,461.94. It still finished down 2.18% for the week. Spain's Ibex gained 0.42% to 19,085.31, yet it led regional losses with a 3.12% weekly decline. Italy's FTSE MIB added 0.49% to 50,483.22, down 2.67% over the five sessions.
U.S. jobs data clouds the yield picture
U.S. nonfarm payrolls rose by just 29,000 in September. The unemployment rate stayed little changed at 4.2%. Investors initially read the soft print as something that could ease pressure on the Federal Reserve to raise rates further, but the bond market's early rally did not hold, and Treasury yields reversed higher on the day.
The U.S. 10-year yield rose to near 5.264%, up about 3 basis points on the day. It was also up 9.5 basis points for the week. Elsewhere on the yield curve, the 2-year added 4.0 basis points to 4.827%. The 5-year climbed 4.1 basis points to 5.046%, and the 30-year ticked up 1.7 basis points to 5.620%.
European yields moved the other way. Germany's 10-year yield fell 6.9 basis points to 3.460%, leading a 14.6-basis-point weekly decline that widened France and Italy's yield spreads against German bonds. France's yield dropped 7.4 basis points on the day but still rose 2.7 basis points for the week, and Italy's fell 7.8 basis points today yet gained 2.2 basis points over the week.
U.S. stocks hold their gains
U.S. equities stayed higher as European markets closed, led by the Nasdaq indices. The Dow Jones Industrial Average added 0.29% to 51,081.10, the S&P 500 climbed 0.65% to 7,716.60, and the Nasdaq Composite gained 1.14% to 27,177.18. The Russell 2000 rose 1.08% to 2,837.00.
The dollar traded mixed, lower against the euro, pound, Australian dollar and New Zealand dollar, but higher against the yen, Swiss franc and Canadian dollar. The reversal in Treasury yields after a weak jobs report shows the initial reaction still needed confirmation from price.
Source: Investinglive RSS Breaking News Feed
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