Dow crosses 17,000 as US employment jumps, Draghi announces rates to stay low

Markets rose on Thursday, with the Dow Jones Industrial Average in particular climbing 0.5 percent to close above 17,000 for the first time ever. The S&P 500 rose 0.6 percent while the STOXX Europe 600 rose 0.9 percent.

Market sentiment was boosted by data on Thursday showing strong jobs growth in the US. Non-farm payrolls rose by 288,000 in June, helping to push the unemployment rate down from 6.3 percent in May to 6.1 percent, the lowest since September 2008.

There were other indications on Thursday that the US economy is growing.

The Institute for Supply Management’s non-manufacturing index came in at 56.0 in June, down from 56.3 in May. However, Markit's services index rose to 61.0 in June, a record high, from 58.1 in May, pushing the composite index to 61.0, also a record high, from 58.4.

Another report on Thursday showed that the US trade deficit narrowed in May as exports rose 1.0 percent to a record high while imports fell 0.3 percent.

In the euro area, reports on Thursday showed that Markit's composite PMI fell to 52.8 in June from 53.5 in May as the services PMI fell to 52.8 from 53.2 while retail sales were flat in May.

However, the European Central Bank gave investors in Europe something to cheer about on Thursday by leaving interest rates unchanged at its monetary policy meeting, with its president Mario Draghi announcing at a press conference afterwards that those rates “will remain at present levels for an extended period”.

Elsewhere in Europe on Thursday, a report from Markit showed that its UK composite index fell to 58.4 in June from 59.1 in May after the services index fell to 57.7 from 58.6.

Earlier, China's services sector showed signs of continued expansion in June. The HSBC/Markit services PMI rose to 53.1 last month from 50.7 in May while the official services PMI from the government fell to 55.0 from 55.5.

However, Japan's services sector continued to contract in June. Markit's services PMI for Japan fell to 49.0 last month from 49.3 in May. The composite index, though, rose to 50.0 from 49.2.