Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a664552

Markets surge to new highs as US jobs figures impress

The FTSE 100 takes another step towards 6,500 after the latest US jobs data smash forecasts.

 
Markets surge to new highs as US jobs figures impress

(Update) The FTSE 100 extended its lead after the latest US jobs figures smashed expectations.

Nonfarm payrolls leaped 236,000 last month, way ahead of economists' forecasts of 160,000, pushing unemployment to a four-year low of 7.7%.

The FTSE 100 traded 28 points or 0.5% higher at 6,468 and the US Dow Jones Industrial Average gained 22 points or to a fresh all-time high of 14,351.

On currency markets the dollar surged leaving the pound trailing 0.5% lower at $1.4941 and the euro 0.9% down at $1.2986.

So far this year the Dow Jones has soared 9.3% with the UK's blue chip index up nearly 10%.

The figures are great news for markets because they show the underlying strength of the US economy. Yet because the increase falls short of the 250,000 average monthly rise needed to reduce unemployment, they do not signal that the Federal Reserve will stop its ultra loose monetary policies, which are the main factor behind this year's impressive stock market rally.

FTSE edges closer to 6,500 as investors await US jobs news

09.38: The FTSE 100 edged closer to 6,500 this morning as investors await the latest round of data from the US.

Asian shares rose overnight, supported by a gain in US equities on strong jobs data and expectation-beating Chinese export figures. 

Positive economic news has taken the Dow Jones past its nominal pre-crisis high in recent days, and in the UK the  FTSE 100 has tested its own records.

Shortly before 9.30am, the FTSE 100 stood at 6,470, up 0.49%.  Financials led the move up, with an upgrade on asset manager Schroders seen as a key boost and HSBC Holdings clinching the top spot after adding 2.32% in early trade.

Risks

But despite the latest gains, analysts have been quick to point out that markets face some significant risks over the hours ahead.

The latest round of US unemployment data will be released at 1.30pm and if the reading is positive there should be a rally in the dollar, as the US creeps closer to its goal of calling time on stimulus.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Henderson Global Investors: 2014 looks set to be another strong year for UK commercial property


Andrew Friend, acting co-manager*, and Marcus Langlands Pearse, co-manager of the Henderson UK Property Unit Trust (HUKPUT), provide an overview of the key risks and opportunities for the UK commercial property market.

More about this:

Look up the shares

  • Schroders PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • HSBC Holdings PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

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 noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet