San Francisco Frontiers - Stocks climb as strong US jobs data pushes off rate hike

Investors were also keeping a close eye on President Donald Trump's bid to push through a tax-cutting budget and reach trade deals.

London's stock market and the pound recovered, having taken a knock Wednesday on rumours that British finance minister Rachel Reeves faced losing her job.

Oil prices fell, with OPEC and the cartel's crude-producing allies expected to announce a rise to output Sunday.

Investors had been keenly awaiting the US government's monthly non-farm payrolls report, seen as one of the best data points on the health of companies and the labour market.

Job growth came in at 147,000 last month, beating expectations, and rising from an upwardly revised 144,000 figure in May.

"The much stronger non-farm payrolls data means a July rate cut is now no longer in consideration, which is music to stock market bulls' ears," said City Index and FOREX.com analyst Fawad Razaqzada.

Wall Street's main indices opened higher, the S&P 500 and Nasdaq Composite pushing up from record closes.

"But with the July 9 tariff deadline looming next week, can stocks retain their gains ahead of the long weekend?," added Razaqzada.

US markets are closed on Friday for US Independence Day celebrations, but negotiators from several nations are racing to reach trade deals with Washington ahead of the deadline imposed by Trump.

Thursday's jobs numbers comes one day after a smaller survey showed the US private sector unexpectedly shed jobs last month for the first time since March 2023. That suggested that the US economy was beginning to be hit by the uncertainty caused by Trump's trade war.

Wednesday's data boosted speculation that the Federal Reserve could cut US interest rates three times this year, with one possibly at the July meeting.

But Razaqzada said Thursday's jobs data ruled out chances of a July cut and a September cut "is now even questionable".

He said investors' focus was likely to shift to trade talks.

The announcement of a US-Vietnam trade deal on Wednesday drew only a muted response.

While the pact provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that Vietnam must still pay levies of as much as 40 percent for certain exports.

The deal means Hanoi will avoid paying the 46-percent levies applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.

The stock exchanges in Ho Chi Minh City and Hanoi both dipped Thursday.

With less than a week left until Trump's July 9 deadline to avoid his "reciprocal" levies, in addition to Vietnam only Britain and China have reached preliminary deals.

Trump has said he will not push back his deadline to make more deals, though he and some of his officials have said a number were in the pipeline.

Elsewhere, US Treasury yields rose amid fresh worries in the bond market over Trump's "Big, Beautiful Bill" that aims to cut taxes and spending on programmes such as Medicaid.

Independent analysis suggests the budget will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy.

- Key figures at around 1330 GMT -

New York - Dow: UP 0.2 percent at 44,580.68 points

New York - S&P 500: UP 0.4 percent at 6,252.39

New York - Nasdaq Composite: UP 0.6 percent at 20,519.86

London - FTSE 100: UP 0.4 percent at 8,812.82

Paris - CAC 40: UP 0.2 percent at 7,752.87

Frankfurt - DAX: UP 0.3 percent at 23,861.11

Tokyo - Nikkei 225: UP 0.1 percent at 39,785.90 (close)

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)

Shanghai - Composite: UP 0.2 percent at 3,461.15 (close)

Euro/dollar: DOWN at $1.1761 from $1.1801 on Wednesday

Pound/dollar: UP at $1.3653 from $1.3634

Dollar/yen: UP at 144.79 yen from 143.65 yen

Euro/pound: DOWN at 86.18 pence from 86.52 pence

West Texas Intermediate: DOWN 0.4 percent at $67.15 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $68.80 per barrel

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A.Smith--SFF