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FTSE climbs out of the red on relief over US jobs

US jobs data smashes expectations but slowdown in wage growth calms fears of faster interest rate rises.

FTSE climbs out of the red on relief over US jobs

The FTSE 100 has swung into gains, buoyed by robust US jobs data that nevertheless calmed fears of faster interest rate rises by the Federal Reserve.

The UK blue-chip index jumped 15 points, or 0.2%, higher to 7,219 points, having spent the bulk of the session in the red before the release of US non-farm payrolls.

February saw 313,000 jobs added, smashing forecasts of 205,000, but wage growth slowed to 2.6%. January's 2.9% reading had sparked a global market sell-off on fears of higher inflation and interest rates, and has now been revised down to 2.8%.

'The fact that we saw wage growth slow to 2.6% from 2.9% would suggest that there is much more slack in this particular jobs market than most people think,' said Michael Hewson, chief market analyst at CMC Markets UK.

'This would suggest that those calls for four rate rises this year may well be a little bit premature.'

In the US, markets opened higher, with the Dow Jones and the broader S&P 500 both rising 0.6%.

The FTSE 100's bounce comes at the end of a decent week for the FTSE 100, largely driven by Tuesday's bounce on growing opposition to US president Donald Trump's plans to impose tariffs on steel and aluminium imports.

Our exclusive Accumulator data table shows the picture for markets over the five days to yesterday.

1 comment so far. Why not have your say?

Hank Elvis Dobbs (texan)

Mar 10, 2018 at 18:11

The figures are always wrong in any case

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FTSE 100 hands back gains as Bank turns hawkish

by Michelle McGagh on Jun 21, 2018 at 17:05

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