FTSE 100 watch: Footsie extends losses as investors digest US jobs data

on Aug 7, 2015

Britain’s blue-chip index has slipped deeper into the red in afternoon trade following the release of the closely-watched US jobs data. Among individual stock news, ITV (LON:ITV) has lost ground following weak earnings reports from US media.

As of 13:45 BST, the Footsie had shed 18.95 points to stand 0.28 percent lower at 6,728.14, having traded marginally lower earlier in the session. The index extended losses immediately after the US Bureau of Labour Statistics reported that American employers had added 215,000 jobs last month, as compared with a forecast for 223,000 new jobs in a Reuters poll of economists. Despite the lower-than-expected number, the report points to progress in the US labour market and could potentially open the door to a rate hike by the Federal Reserve next month.

“The Fed is close to tightening – it doesn’t need to see a lot more improvement, just a little more,” Dana Saporta, an economist at Credit Suisse Securities, told Bloomberg before the report was released. “Data that shows continued diminishing of slack in the labour market is sufficient” for policy makers to raise interest rates this year.
At home, ITV’s share price has fallen 2.72 percent to 264.50p following Disney’s disappointing numbers. Shares in blue-chip peer Sky (LON:SKY) are trading 0.82 percent lower at 1,091.00p.
London-listed miners, however, are providing some support to the Footsie, benefitting from an improvement in commodity prices. Glencore (LON:GLEN) and Anglo American (LON:AAL) have posted the most notable gains in the sector with shares in Glencore changing hands 1.93 percent higher at 203.15p and Anglo American’s share price having added 2.04 percent to 203.15p so far in today’s trading.
**The FTSE 100 was 0.16 percent down at 6,736.04 points as of 14:09 BST on August 7, 2015.**

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