US and European shares resumed their rally and the dollar index hit a one-year peak on November 4 as US jobs data surprised on the upside. Data showed the United States created more jobs than expected in October, pushing the country closer to full employment, one of the Federal Reserve's conditions for raising interest rates.

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Non-farm payrolls increased by 531,000 jobs last month as the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.

Economists polled by Reuters had forecast payrolls rising by 450,000 jobs.

"If these numbers continue at this pace, we could probably see full employment at the end of the first quarter," said Peter Cardillo, chief market economist at Spartan Securities.

The dollar index, which measures the greenback against a basket of six rivals, rose as high as 94.634 after the jobs report, its highest level since September 25, 2020.

The Dow Jones Industrial Average rose 0.75 while the S&P 500 gained 0.71 percent. The Nasdaq Composite added 0.58 percent.

The advances came even after the US Federal Reserve finally announced on November 2 that it would begin tapering its massive asset purchase programme, though Fed Chair Jerome Powell said he was in no rush to hike borrowing costs.