(Adds details, updates prices)
* World shares climb to fresh record high, up 0.2%
* Copper, iron ore prices at new all-time peak
* Cyber attack on U.S. pipeline lifts oil prices
* Shock U.S. jobs data ease concerns over Fed rate hikes
* Dollar nurses losses, sterling rises above $1.40
By Danilo Masoni
MILAN, May 10 (Reuters) - World stocks and copper prices hit
new peaks on Monday on bets that interest rates will remain low
and the economy will continue its recovery, while oil prices
jumped after a cyber attack on a U.S. pipeline operator.
MSCI's gauge of stocks across the globe .MIWD00000PUS hit
a fresh record high and was up 0.2% by 1219 GMT, driven by gains
across Asian markets and a steady session in Europe.
Copper raced to a new all-time high as investors worried
about missing out on further gains driven by expectations for
improved demand amid tightening supply. MET/L
Oil prices were buoyed after a cyber attack shut down a U.S.
pipeline operator that supplies nearly half of the U.S. East
coast's fuel. O/R
Europe's STOXX 600 .STOXX index also reached a new
historic peak and was up 0.1% as big London-listed miners
rallied on strong commodity prices, while MSCI's broadest index
of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.6%.
S&P 500 EScv1 futures were up 0.1% while Nasdaq NQc1
futures fell 0.3%.
U.S. nonfarm payrolls data on Friday showed jobs growth
slowed much more than expected in April, a shock release that
gave equities a lift but applied downward pressure on the dollar
and U.S. Treasury yields.
"A statistical fluke and/or a temporary pause in labor
market demand is the likeliest culprit for this report. However,
the Federal Reserve cannot afford to adjust policy without
concrete proof of a stronger labor market recovery," said
Natixis economist Troy Ludtka.
On Friday the Dow Jones Industrial Average .DJI and the
S&P 500 .SPX rose to record closing highs as the disappointing
data on the U.S. jobs market eased concerns about a spike in
consumer prices. In recent weeks, some investors had been placing bets that a
robust U.S. economic recovery from the coronavirus pandemic
would force the Fed to tighten policy earlier than the central
bank has outlined.
However, the weak nonfarm payrolls report caused a rapid
reversal in some of these trades, which rippled through stocks,
bonds and major currencies.
U.S. President Joe Biden said after the report that the
figures showed the economy was not at risk of overheating and
underscored how vital his administration's economic actions are.
"In the end, it is the best of all possible worlds for
equities: robust economy, strong earnings, but no monetary
policy tightening and more fiscal spending coming," said
Giuseppe Sersale, fund manager at Anthilia in Milan.
The focus now shifts to U.S. consumer price data due on
Wednesday, which will help investors determine whether they need
to scale back their inflation expectations even further.
The dollar index =USD against a basket of six major
currencies was little changed at 90.114, just above 2-1/2 month
lows hit earlier in the session.
The pound broke above the key $1.40 level for the first time
in more than two months, even as pro-independence parties in
Scottish elections won a majority. GBP/
The pound was up 1% against the dollar at $1.4127 GBP=D3 .
In the cryptocurrency market, ether ETH=BTSP rose to a
fresh record above $4,000 and was last up 4.4%. Bigger rival
bitcoin BTC=BTSP fell 0.6% to $57,939.
The yield on benchmark 10-year Treasury notes US10YT=RR
was little changed at around 1.579% after having plunged to a
two-month low of 1.469% on Friday.
Three-month copper on the London Metal Exchange CMCU3
climbed to an all-time high of $10,747.50 a tonne after first
breaking through a decade-old record on Friday.
Copper also hit a record high on the Shanghai Futures
Exchange as the most-traded June copper contract SCFcv1 closed
up 4.8% to 77,720 yuan ($12,094.62) a tonne.
Iron ore SZZFc1 rose as much as 9%, also scaling a record
peak, reflecting optimism about the economic outlook.
"Commodities are being driven by stronger demand as the
global economy recovers from the pandemic and supplies are
getting tighter," said AJ Bell investment director Russ Mould in
London.
Analysts said Friday's disappointing April non-farm payrolls
further fuelled the rally in metal prices as the dollar got hit.
Brent crude LCOc1 rose 1.1% to $69.03 per barrel as the
disruption to U.S. supplies rattled energy markets, while U.S.
crude CLc1 added 1% to $65.52 a barrel.
The White House was working closely with top U.S. fuel
pipeline operator Colonial Pipeline on Sunday to help it recover
from the ransomware attack that forced the company to shut its
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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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