FTSE 100 watch: Footsie extends gains as US jobs report undershoots expectations

on Sep 2, 2016

The UK benchmark index has rallied in today’s session, extending gains in afternoon trade after the highly-anticipated US jobs report fell short of forecasts. The weaker-than-expected result is seen delaying the Federal Reserve’s move to hike interest rates.

As of 14:37 BST, the Footsie had added 100.41 points to stand 1.49 percent higher at 6,846.38, having traded about 0.6 percent higher earlier in the session. The blue-chip index, which remains on track for a fall this week, has extended gains after the US Bureau for Labour Statistics reported that the world’s biggest economy had added 151,000 jobs last month. The number was well below the 180,000 new jobs flagged in a Reuters survey of economists.
The Telegraph quoted Lukman Otunuga, of ForexTime, as commenting that today’s disappointing labour report had “failed to fulfil one of the prerequisites needed for the Fed to pull the trigger in the short term”.
“Talks about September being a ‘live’ meeting to raise US rates may be discounted after today while December could hang on a thin line,” the analyst said. “While the overall outlook for the US economy still looks somewhat encouraging, more positive data may be needed in Q4 to renew hopes of the Fed breaking the trend of central bank inaction in December.”
In individual movers, Carnival (LON:CCL) has fallen to the bottom of the blue-chip leaderboard after analysts at Morgan Stanley slashed their rating on the stock to ‘underweight’. Carnival’s share price is currently 4.60 percent worse off at 3,497.25p. BT Group (LON:BT.A) meanwhile is underperforming the market, trading 0.89 percent higher at 390.04p, after analysts at JPMorgan trimmed their recommendation on the stock from ‘overweight’ to ‘neutral’.
**The FTSE 100 was 1.68 percent up at 6,859.58 points as of 14:49 BST on Friday, September 2, 2016.**

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Indices Stock Market