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| - Copper and iron ore prices hit record highs Friday as demand for the key commodities surges on the back of a powerful recovery in the global economy. But the US jobs report came in much lower than expected, raising questions of just how powerful that recovery is. The dollar slumped following the news but the Dow struck a new high. With major economies led by the United States and China reopening after last year's Covid shutdowns, industries are ramping up production, pushing the cost of materials ever higher as traders also worry about a lack of supply caused by the pandemic. Copper, a major indicator of the state of the global economy owing to its use in a multitude of products, broke to an all-time high above $10,300 per tonne Friday and, with the global recovery expected to continue for some time, analysts say the price can continue north. The metal is often called "Doctor Copper" by analysts for the correlation in its price movements with the wider state of the economy. "It's hard to foresee copper prices turning around amid the current bullish atmosphere," said Ji Xianfei at Guotai Junan Futures Co. Commerzbank AG analyst Daniel Briesemann said "long-term prospects for metals prices... point to higher prices". He added: "The decarbonisation trends in many countries -- which include switching to electric vehicles and expanding wind and solar power -- are likely to generate additional demand for metals." Iron ore also broke to new levels above $200 as commodities prices across the board advance, with lumber, tin, bacon and sugar all sharply higher. However, that has fanned fears about a spike in inflation around the world that many warn could force central banks to wind back their ultra-loose monetary policies that have helped fire a global markets rally for more than a year. Top bankers led by the Federal Reserve have repeatedly pledged to maintain their accommodative measures for the foreseeable future, though many believe their hand could be forced by a period of excessively high inflation. Investors had been waiting for the release of the US nonfarm payroll report on Friday to get a better idea of the state of the recovery. With analysts expecting a gain on the order of one million jobs, the figure of 266,000 additional jobs in April came as a major disappointment. With strong rehiring in the leisure and hospitality sector as pandemic restrictions were eased in many states, other sectors actually shed jobs during the month. Patrick J. O'Hare at Briefing.com said the poor result has "ignited the idea that the market has gotten ahead of itself with its recovery/reopening enthusiasm." The recovery and reopening of the economy has driven US stocks to record highers in recent months. While the blue-chip Dow opened lower, it later turned and pushed to a new intraday high. The miss "contributed to a general relaxation of nerves regarding any changes to Fed policy", said Chris Beauchamp at IG. The dollar, meanwhile, slumped. "Today's surprise payrolls miss has seen the euro continue its recent advance against the US dollar as the prospect of a more uneven US recovery undermines the greenback," said Michael Hewson at CMC Markets UK. European stocks ended the day higher. New York - Dow: UP 0.4 percent at 34,701.91 points EURO STOXX 50: UP 0.9 percent at 4,034.15 London - FTSE 100: UP 0.8 percent at 7,129.71 (close) Frankfurt - DAX 30: UP 1.3 percent at 15,399.52 (close) Paris - CAC 40: UP 0.5 percent at 6,385.51 (close) Tokyo - Nikkei 225: UP 0.1 percent at 29,357.82 (close) Hong Kong - Hang Seng Index: DOWN 0.1 percent at 28,610.65 (close) Shanghai - Composite: DOWN 0.7 percent at 3,184.87 (close) Euro/dollar: UP at $1.2154 from $1.2061 at 2105 GMT Pound/dollar: UP at $1.3989 from $1.3890 Euro/pound: UP at 86.84 pence from 86.80 pence Dollar/yen: DOWN at 108.55 yen from 109.09 yen Brent North Sea crude: UP 0.2 percent at $68.22 per barrel West Texas Intermediate: UP 0.1 percent at $64.78 per barrel burs-rl/pvh
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