U.S. jobs picture spurs rise in world stocks

World stocks rose Monday on hopes that the U.S. economy can avoid slipping back into recession, although the International Monetary Fund's chief economist warned of weak growth in the United States and Europe.

With U.S. markets closed for Labor Day, Friday's encouraging news about the employment picture continued to spill over into trading Monday.

Some investors, particularly in Asia, were catching up with the U.S. jobs numbers, which were not as bad as some had feared. Japan's Nikkei closed up 2.05 percent.

Europe's FTSEurofirst 300 closed slightly higher, up 0.2 percent. And MSCI's all-country world stock index and its Thomson Reuters counterpart were up more than 0.4 percent at the European close.

The dollar was generally weaker, with the euro rising to its highest in three weeks before easing back.

- Reuters

French railway, London subway disruptions

Rail and air service in France will be sharply cut back Tuesday in response to a national strike by trade unions to protest plans to raise the retirement age. And in a separate protest, London's Underground rail network also faced major disruption Tuesday.

Both strikes were to last 24 hours.

The French protest coincides with the start of debate in parliament over a plan to overhaul the money-losing pension system so it will break even in 2018. President Nicolas Sarkozy's government says the reform is essential because people live longer, and it has urged residents to show "courage" as it tries to chip away at the huge national debt.

France's SNCF state railway company said that intercity and local train services would be reduced by 50 percent or more but that Eurostar links with Britain should run normally.

Air France said that short- and medium-haul flights would be cut to 50 percent Tuesday at Orly airport, south of Paris, and to 90 percent at Charles de Gaulle airport, northeast of the capital, but that long-haul service should be unaffected.

In England, as many as 10,000 London Underground drivers, station staff and engineers - a majority of the workforce - are expected to strike over pay and job cuts. Unions say they will follow the one-day strike with three more before the end of November.