View the article online at http://citywire.co.uk/money/article/a644041
Dollar and shares rally after US jobs report
FTSE breaks out of its tight holding pattern as US employment grows much more strongly than expected.
(UPDATE) European stock markets were awoken from their slumber by a better-than-expected report on the US jobs market, which put paid to earlier minor share price declines.
The FTSE 100 leapt to life, climbing 0.3% to 5,917, having been stuck trading just a few points below the key 5,900 mark for most of the morning.
US stock market futures were also pointing upwards after the US labour report showed employment, or non-farm payrolls, had grown by 146,000 in November, much better than the expectation of 85,000 among economists.
The unemployment rate also fell from 7.9% to 7.7%.
The Labour department, which publishes the figures, said that Hurricane Sandy did not 'substantively' impact on the jobs markets in November.
‘Whether today’s relative strength in the labour market can continue is another question,’ commented James Knightley, an economist at ING Bank, ahead of next week’s Federal Reserve meeting, and amid ongoing negotiations to avert a ‘fiscal cliff’.
The dollar gained, rising 0.4% to 80.6 as measured against a basket of currencies. The euro conversely fell 0.5% to $1.2898, continuing a poor week for the single currency amid renewed concerns about the strength of the eurozone. A report published this morning showed that German industrial production fell by 2.6% in October.
In the UK, where the pound was trading down 0.2% at $1,6010, the news on manufacturing was similarly grim with a 1.2% fall in output in October.
Investors wary ahead of major economic reports (08:45)
Investors were biding their time on Friday morning ahead of a slew of reports on the state of the world’s two biggest economies which are due over the next two days.
The FTSE 100 continued this week’s lackadaisical trading, moving just 3 points to 5898. Other major European markets were equally flat.
The euro made a shift lower though, down 0.3% to $1.2929, continuing to suffer after European Central Bank president Mario Draghi yesterday emphasized the weakness of the eurozone economy.
Investors are waiting for this month’s US labour report this afternoon, with the non-farm payrolls number one of the most important gauges of US economic health.
News sponsored by:
Making the most out of Europe’s potential means seeing things differently. Learn more about how BlackRock’s focused approach to investing in Europe helps investors unlock the continent’s vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the funds
Look up the shares
More from us
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.