Crude oil resumed a downward drift and global equity markets rose yesterday after a robust US jobs report drove home the strength of the American economy and set the stage for the Federal Reserve to raise interest rates next week.

US employment increased more than expected in February and wages rose steadily, providing the Fed a green light to raise rates at a policy-setting meeting on March 15.

Nonfarm payrolls rose by 235,000 jobs as the construction sector recorded its largest gain in nearly a decade due to unseasonably warm weather, the United States Labour Department said.

The perceived chances that the United States central bank will hike rates next week rose to 92 per cent after the jobs report, according to Thomson Reuters data.

Shares on Wall Street posted broad-based gains while banking stocks in the euro zone hit their highest in more than a year on expectations the European Central Bank will tighten policy in 2018, if not before.

The ECB on Thursday indicated less urgency for more policy action and signalled an optimistic outlook for the euro zone economy.

The FTSEurofirst 300 index of leading European companies rose 0.08 per cent to 1,471.88.

MSCI’s all-country world stock index rose 0.46 per cent.

On Wall Street, the Dow Jones Industrial Average rose 10.1 points, or 0.05 per cent, to 20,868.29. The S&P 500 gained 3.79 points, or 0.16 per cent, to 2,368.66 and the Nasdaq Composite added 15.07 points, or 0.26 per cent, to 5,853.88.

Oil prices fell further on reports of heavy oversupply in spite of production cuts by the Organisation of the Petroleum Exporting Countries.

Brent crude oil fell 52 cents at $51.67 a barrel, while United States crude was 45 cents lower at $48.83.

Analysts said they expected a period of market consolidation after this week’s heavy declines, but another sell-off is possible if investors are forced to sell loss-making contracts.

Meanwhile, the dollar fell after the United States jobs report showed wages rose less than expected, tempering expectations for a spate of future interest rate increases.

The euro was up 0.85 per cent to $1.0665.

The dollar index, which tracks the greenback against six major world currencies, fell 0.42 per cent to 101.420, its lowest in nearly a week.

The dollar also fell to its lowest in nearly a week against the Swiss franc, dipping to 1.0083 francs.