Global markets soar as US jobs data brings more cheer

Global markets leapt higher in early afternoon deals after upbeat news showed a much smaller than feared drop in US employment last month.

The FTSE 100 jumped 1.3% higher to 5442.6 after news that only 54,000 Americans lost their job in August, well below the consensus view that non-farm payrolls would fall by more than 100,000.

Excluding the impact of workers recruited by the state to complete the national census, which had temporarily boosted employment, the official government data shows 67,000 found work in August - much higher than the 30,000 advance that had been expected.

At 9.6% the unemployment rate came in in-line with expectations.

The bounce was even higher across the Channel with France's CAC up 1.8%, Spain's IBEX up 1.5% and Italy's main index up 1.6%.

Ahead of the data European exchanges and US futures had been flat but US futures turned sharply higher indicating the DJIA will add more than 100 points in opening deals. 

Today's good news comes after much better than expected manufacturing data in the US earlier this week.

The news saw investors turn their backs on the relatively safe dollar and pick up into the pound, up one cent at $1.5462.