3 Dec 2011

Global stock markets climb

3:22 pm on 3 December 2011

Global stock markets have risen and registered their biggest weekly advance since March 2009 as data showed a drop in the US jobless rate, while the euro fell after four days of gains.

The jobs data supported the view that the US economy would avoid another recession, even as Europe battles its debt crisis.

Markets have posted strong gains after central bank moves earlier this week cut funding costs for banks.

Signs that euro zone policymakers are working hard to resolve a compromise deal ahead of a 9 December summit, viewed as make-or-break for the 12-year-old single currency bloc, also lent support.

World stocks on the MSCI all-country index were up about 8.4% for the week, its biggest weekly percentage gain since March 2009.

US stocks also registered their best week since March 2009, with the benchmark Standard & Poor's 500 up 7.4% for the week.

An index of European stocks ended up 1%.

The US government said the economy created 120,000 jobs last month, while the jobless rate fell sharply to 8.6%, further evidence the economic recovery was gaining momentum.