FTSE 100 watch: Rally continues after US jobs data

Berkeley share price outperforms as group lifts guidance

FTSE 100 watch: Rally continues after US jobs data

The FTSE 100 has jumped in today’s trading, recouping some of the previous session’s losses, and holding onto gains following the latest US jobs report. Investors are also digesting company news, including Berkeley Group’s (LON:BKG) move to lift its profit guidance.

FTSE 100 rallies

As of 13:34 GMT, the Footsie had added 103.62 points to stand 1.55 percent higher at 6,807.67, having lost more than three percent in the previous session. Reuters, however, noted that analysts and investors remained unconvinced that the gains represented a change in sentiment.

“Are people going to put new cash to work convincingly now, thinking this is the low? I can’t see there’s any urgency to do that now really,” said Ian Williams, analyst at Peel Hunt, as quoted by Reuters, adding that it looked “like a bounce from an extreme technical oversold level, but I don’t think it means we’re out of the woods yet by any means”.

The FTSE 100 has held onto gains after the US Bureau of Labour Statistics said that the world’s biggest economy had created 155,000 new jobs last month, while the unemployment rate had held steady at 3.7 percent. CNBC reports that economists polled by  Dow Jones had forecast 198,000 new jobs.

Blue-chip movers

In individual stock news, Berkeley’s share price has added 2.08 percent to 3,390.00p after the blue-chip housebuilder hiked its pre-tax profit guidance for the current financial year by more than five percent.

Associated British Foods (LON:ABF) meanwhile is missing out on the rally, having given up 4.89 percent to 2,235.00p, after revealing that it had seen challenging trading at its Primark chain last month. 

The FTSE 100 was 1.79 percent up at 6,823.80 points as of 14:00 GMT on Friday, 07 December 2018.

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