London markets rally as US jobs market swells
The FTSE 100 climbed more than 1.5% on Friday, taking it above 7,600 after shedding value earlier in the week.
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Your support makes all the difference.European and US markets enjoyed a rally to end the week amid further signs that the world’s biggest economy is in better-than-expected shape.
London’s FTSE 100 climbed more than 1.5% on Friday, taking it above 7,600 after shedding value earlier in the week.
Investors in the US were even more buoyant, with the top index, the S&P 500, soaring to its highest level since August.
It was trading 1.3% higher, and Dow Jones rallied 1.8%, by the time European markets closed.
The FTSE 100 closed 117.01 points higher, or 1.56%, to 7,607.28 after another strong session for mining stocks.
The latest closely watched jobs report in the US showed that 339,000 jobs were added to payrolls in May, far ahead of forecasts.
Some analysts pointed out that, while the figures could persuade the Federal Reserve to push through another rate hike to control inflation, it is good news to see the jobs market showing signs of strength.
A resilient economy and consumer is short-term good news for the stock market
Edward Moya, senior market analyst at Oanda, said: “US stocks are holding on to gains after a complicated jobs report showed hiring isn’t ready to cool, layoffs are rising, and wage pressures seem to be easing.
“We are almost at the midpoint of the year and this economy is not showing strong signs that the second half of the year recession is coming.
“A resilient economy and consumer is short-term good news for the stock market.”
Other European markets enjoyed a boost on Friday. Germany’s Dax was up 1.25% and France’s Cac lifted 1.87 at close.
The pound was down 0.5% against the US dollar at 1.2462, and down 0.1% against the US dollar at 1.1624.
In company news, budget airline Wizz Air said it carried 22% more passengers in May, compared with the same month last year, as it plans new flights between more destinations in Europe.
The airline is set to release its full-year results on Thursday, where investors will be keeping an eye on how increased passenger numbers will translate into profit and revenue. Its share price dipped by 1.4%.
Sportswear brand JD Sports enjoyed an uplift on Friday after rival athleisure retailer Lululemon reported a surge in revenues in the US and internationally.
JD had previously argued that customers see trainers and sports clothing as an “affordable luxury” they are not willing to give up, defying trends in the wider retail sector of consumers cutting back. Shares in JD closed 3% higher.
The biggest risers on the FTSE 100 were Prudential, up 62p to 1,153p, Antofagasta, up 76.5p to 1,456.5p, Anglo American, up 118.5p to 2,418p, Glencore, up 17p to 433.9p, Weir Group, up 67p to 1,782.5p.
The biggest fallers were BT Group, down 5p to 143.65p, Vodafone Group, down 0.5p to 75.63p, SSE, down 12p to 1,868p, Hiscox, down 5p to 1,169p, and Compass Group, down 7p to 2,207p.