FTSE 100 Ends Lower Despite Positive US Jobs Report
The FTSE 100 closed in the red on Friday, despite a boost in the US job market. Data revealed that the US economy added 254,000 jobs last month, alleviating concerns about a looming recession.
London’s benchmark index dipped by 0.02% to 8280.63 points, with rising oil prices and robust US employment figures preventing steeper losses. NatWest, Barclays, and Lloyds stood out as top gainers, buoyed by the better-than-expected non-farm payroll numbers.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented, “With companies showing positivity by hiring more staff and the likelihood of further interest rate cuts, there is growing optimism for a Goldilocks scenario in the US economy, maintaining growth while controlling inflationary pressures.”
The brighter outlook for the US economy had a ripple effect in London, with the globally focused FTSE 100 bouncing back from earlier declines. Meanwhile, Brent Crude futures increased by 0.657% to $78.130, amid concerns over supply disruptions due to tensions between Israel and Iran.
In European markets, the Dax in Frankfurt climbed by 0.55%, and Paris’s Cac 40 closed up by 0.91%. Over in New York, the S&P 500 and Dow Jones indices posted gains after the European markets had closed.
On the currency front, the pound weakened by 0.18% against the dollar and strengthened by 0.50% versus the euro. In corporate news, pub chain Wetherspoon reported a 73.5% surge in pre-tax profits to £73.9 million for the year ending July 28, driven by a 5.7% revenue increase to £2.04 billion.
The FTSE 100’s top risers included BAE Systems, BP, WPP, Shell, and Rightmove, while IAG, easyJet, Intermediate Capital, JD Sports, and 3i Group were among the major fallers.
Overall, despite the FTSE 100 finishing lower, the positive US jobs report and other market dynamics provided a mixed bag of results for investors and traders alike.