(MENAFN - AFP) Europe's main stock markets rose and the euro soared on Tuesday as investors interpreted lacklustre US jobs data as a sign that the Fed will maintain its stimulus policy intact.
At close, Frankfurt's DAX 30 climbed 0.90 percent to set a new record at 8,947.46 points.
London's benchmark FTSE 100 index added 0.62 percent to 6,695.66 points, and the CAC 40 in Paris rose 0.43 percent to 4,295.43 points after briefly breaking the 4,300 mark for the first time since the financial crisis hit in late 2008.
The US Labor Department posted tepid numbers for September job creation, generating a less-than-expected 148,000 jobs during the last month even though the data also showed the unemployment rate fell to 7.2 percent from 7.3 percent a month earlier.
"Weak momentum in the jobs market is likely to delay tapering," Robert Wood of Berenberg Bank said, with wobbly confidence likely to bring "another disappointing month or two to come".
"We expect the US economy to pick up pace next year as a result of super-loose monetary policy and less austerity," he said.
"But with another budget showdown coming and payrolls soft the Fed is likely to err on the side of supporting the recovery rather than tapering soon."
The keenly-watched report had been scheduled for release on October 4, but was postponed along with most official economic indicators after the federal government partially shut down on October 1 due to a political budget impasse in Congress.
Asian markets had diverged as investor caution prevailed in advance of the data.
Tokyo stocks rose 0.13 percent, while Hong Kong lost 0.52 percent in value.
With the jobs data, economists widely believe there is a good chance the US Federal Reserve will delay winding down its stimulus programme -- which depressed the value of the dollar -- until possibly the new year.
The European single currency surged close to a two-year dollar peak on the news.
Shortly after 1430 GMT, the euro spiked as high as 1.3786, hitting the highest level since November 2011. It later stood at 1.3773, up from 1.3681 late in New York on Monday.
The dollar however firmed to 98.17 yen from 97.15 yen on Monday. Sterling dipped to 84.94 pence to the euro, and rose to 1.6215.
The price of gold advanced to 1,333 an ounce on the London Bullion Market, from 1,317.50 on Monday.
US stocks also rose on the jobs data. At midday, the Dow Jones Industrial Average rose 0.43 percent to 15,458.60.
The broad-based S&P 500 added 0.48 percent at 1,753.01 while the tech-rich Nasdaq Composite Index increased 0.22 percent to 3,928.69.
In company news, Paris-listed ArcelorMittal sank 3.66 percent to 11.59 euros after lowered rating from UBS. Similarily, gas utility GDF Suez fell 1.43 percent to 18.31 euros after a negative assessment by Bank of America-Merrill Lynch.
In London, consumer goods group Reckitt Benckiser won 5.20 percent to 4.734 pence, after raising its yearly outlook and announcing it was considering a sale of its pharmaceutical division.
German airline Lufthansa meanwhile tumbled 2.36 percent to 14.51 euros after announcing a profit warning just before the Frankfurt market open.