Traders see silver lining to jobs data

EUROPEAN stock markets have closed sharply higher, getting a boost from gains on Wall Street as investors bet that a very weak US jobs report would prompt more interest rate cuts.

London's FTSE 100 index of leading shares gained 2.17 per cent to 4364.96.

The Paris CAC 40 index rose 2.42 per cent to 3469.12 points, and the Frankfurt DAX put on 2.59 per cent to 4938.46.

Data released overnight showed the US economy lost 240,000 jobs in October, well above forecasts for 200,000.

Dealers said the figures were taken to mean that the US economy was in recession but also that the Federal Reserve would cut interest rates again to temper the downturn.

 

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