New York: U.S. and European stocks rose and credit spreads tightened further on Thursday as hopes that a deep global recession may have bottomed gained the upper hand.

The U.S. dollar rose against the safe-haven yen amid a modest rise in risk appetite as investors shrugged off the latest signs of worldwide economic weakness.

U.S. crude oil prices rose back above $58 a barrel, tracking the rebound on Wall Street, although a gloomy forecast about world energy demand by the International Energy Agency limited gains.

Investors remain caught between two camps: those anticipating economic recovery and those still worried about recession.

U.S. and euro zone government bonds rose as the weak U.S. jobs data underscored the long road to recovery from the worst global economic slump since World War Two. Gold prices also rose, helped by demand for protection against potential inflation.

"Investors were not afraid to miss the first 10 percent of the market move up because they were more worried about the market moving lower," said Dick Del Bello, senior partner at Conifer Securities in New York.

"But there's an enormous amount of cash sitting on the sidelines, and that's not doing anybody any good. Managers today feel they have to participate."

 

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Source : IANS