US open: Markets rebound after better-than-expected payrolls data

Markets advanced on Friday, as a better-than-forecast payrolls report boosted confidence in US economy.

Non-farm payrolls rose to 248,000 in September, exceeding consensus expectations of 215,000, while July and August figures were revised up by a net 69,000 people, somewhat reducing the impact of last month’s surprise fall.

The average figure for jobs gains in 2014 now stands at 227,000.

“The recovery continues apace, helped by super loose Fed policy,” said Berenberg analyst Rob Wood.

“These latest payrolls figures bode well for a strong third quarter and will raise concerns about how long the Fed will be able to keep rates on hold once it finishes tapering bond purchases, which it should do this month.

“So far the central bank has said it will keep rates on hold for a ‘considerable period’. We look for the first rate hike in April.”

The unemployment rate fell again after a few months of stability, declining to a six-year low 5.9% in September, continuing a trend that has seen the unemployment rate fall 1.3% over the past 12 months.

The participation rate fell to 62.7%, its lowest level since 1978, as workers did not seem to be returning to the workforce, despite a growing economy.

Radioshack soared as high as 36% before the bell after investors reacted positively to the news that the retailer had reached a financing agreement, meaning the company could successfully restructure.

Mylan rose after raising its third-quarter and full-year guidance, while Salix Pharmaceuticals and Cosmo Technologies bot rose sharply after Salix abandoned plans of merging with the technology firm, which had been structured as a controversial tax-inversion deal.

Tekmira Pharmaceuticals rose amid reports that of an increasing number of Ebola cases in the US, while Legacy Reserves fell after announcing it was planning a new unwritten public offering.

Gold prices sank on Friday, with gold for December losing 1.1% to $1,201.90 an ounce, while West Texas intermediate crude dropped 0.5% and was trading at just over $90 a barrel.

The 10-treasury note rose three basis points to 2.46, while the 30-year treasury yield gained 1.25% to 3.15 and the five-year note gained six basis points to 1.74.

The dollar rose of over a full percentage point against the pound and the euro and registered a significant gain against the yen.