Berliner Boersenzeitung - Stocks, dollar recover from US jobs disappointment

Global stocks markets slumped Friday following data showing weaker than expected US jobs growth, which raised concerns about the economy.

Following Friday's sharp losses -- which followed drops earlier in the week -- a rebound attempt is no surprise, said Briefing.com analyst Patrick O'Hare.

"It is simply the start of something after big losses, which makes it reflexive in nature," he said in a note to clients.

"Frankly, how the market starts today is irrelevant to how it finishes."

Friday's jobs data also raised expectations that the US Federal Reserve will cut interest rates next week after holding them at a 23-year high to tame inflation.

The highly anticipated non-farm payrolls report showed an estimated 142,000 jobs were created in the United States last month, up on July but well off forecasts.

Traders have been on edge since the July figures, which helped to spark a market rout on speculation that the Fed may have waited too long to cut borrowing costs as it focused on bringing down inflation.

Debate is centred on whether the Fed will reduce rates by 25 or 50 basis points.

"The report didn't suggest a severe downturn is imminent, but the softness in the numbers certainly point to an increase in the probability a recession could be on the cards," said Rodrigo Catril, currency strategist at National Australia Bank.

"The Fed may just cut by 25 basis points in September, but it will keep its options open for bigger cuts in November and or December, depending on how the data evolves from here."

In Europe, investors awaited an expected interest-rate cut from the European Central Bank on Thursday.

The European Central Bank is set to cut eurozone borrowing costs once more as inflation in the single-currency bloc drifts back towards the ECB's two-percent target.

"Wage pressure has been a key driver of eurozone inflation this year, and now that it is retreating it could allow the ECB to embark on a prolonged rate-cutting cycle," said Kathleen Brooks, research director at trading platform XTB.

Asian shares ended lower on Monday.

A slight uptick in Chinese inflation did little to soothe worries about the world's number two economy, with the reading at a six-month high but missing forecasts.

Oil prices clawed back some of Friday's big losses sparked by demand concerns as the US outlook weakened.

The commodity was supported by news that OPEC and other key producers had delayed a planned output boost, analysts said.

- Key figures around 1330 GMT -

New York - Dow: UP 0.6 percent at 40,578.45 points

New York - S&P 500: UP 0.8 percent at 5,448.87

New York - Nasdaq: UP 0.9 percent at 16,838.07

London - FTSE 100: UP 0.7 percent at 8,236.71

Paris - CAC 40: UP 0.7 percent at 7,399.75

Frankfurt - DAX: UP 0.5 percent at 18,390.62

Tokyo - Nikkei 225: DOWN 0.5 percent at 36,215.75 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 17,196.96 (close)

Shanghai - Composite: DOWN 1.1 percent at 2,736.49 (close)

Euro/dollar: DOWN at $1.1050 from $1.1089 on Friday

Pound/dollar: DOWN at $1.3097 from $1.3132

Dollar/yen: UP at 142.90 yen from 142.29 yen

Euro/pound: DOWN at 84.38 pence from 84.41 pence

Brent North Sea Crude: UP 0.3 percent at $71.28 per barrel

West Texas Intermediate: UP 0.4 percent at $67.95 per barrel

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(H.Schneide--BBZ)