Wall St rises as data points to accelerating economy

The dollar hit a one-week high against the yen early on Friday, on the front foot after upbeat USA private sector job figures and awaiting the closely-watched non-farm payrolls report for another potential boost.

Meanwhile, spending in the construction sector fell 1.4% for the month, the biggest drop in a year, and below forecasts of a 0.2% decline.

USA stocks were higher on Thursday after better-than-expected private sector hiring showed that the labor market continues to strengthen, further boosting chances of a rate hike by the Federal Reserve later this month.

Robust jobs numbers should cement expectations of a Federal Reserve interest rate hike at its June 13-14 policy meeting. A break of $0.7370 would test a trough of $0.7329 touched last month.

The dollar JPY= firmed to 111.52 yen, from Wednesday's near two-week low of 110.485 yen. USA gold futures ended the session up 0.8 percent at $1,280.20 an ounce. The Australian dollar declined sharply against United States dollar on Thursday as Australian dollar was dragged down following slump in China's manufacturing data and stronger dollar across the board.

The Australian dollar tumbled on Thursday after a private survey showed China's manufacturing activity unexpectedly shrank in May, casting a cloud over the global economic outlook. A rise of around 180,000 jobs was expected for the ADP report. USA private employers added 253,000 jobs in May, above economists' expectations, a report by a payrolls processor showed on Thursday.

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Hiring in the months of April and March was revised downward by a combined 66,000.

"Unless we have a real weak employment data tomorrow I think it's a go-ahead for the Fed to raise rates in June", said Peter Cardillo, chief market economist at First Standard Financial in NY.

Data showing a healthy uptick in private sector hiring and factory activity during May bolstered expectations that the USA economy was picking up speed and lifted stocks on Wall Street after two days of losses.

At 9:52 a.m. ET the Dow Jones Industrial Average (.DJI) was up 21.5 points, or 0.1 percent, at 21,030.15, the S&P 500 (.SPX) was up 6.16 points, or 0.25 percent, at 2,417.96 and the Nasdaq Composite (.IXIC) was up 26.51 points, or 0.43 percent, at 6,225.03.

Spot gold was down 0.04 percent at $1,267.58 per ounce by 3:05 p.m. EDT (1905 GMT), having peaked the previous day at its strongest since April 25 at $1,273.74.USA gold futures fell 0.4 percent to settle at $1,270.1.

Global benchmark Brent crude futures fell to US$49.63 a barrel, while U.S. West Texas Intermediate crude by more than a dollar to US$47.36 per barrel. US crude settled up $0.04, or 0.08 percent, at $48.36 per barrel.

  • Zachary Reyes