FTSE 100 watch: Footsie remains subdued after US jobs report

By: Tsveta van Son
Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a… read more.
on Sep 6, 2019
Updated: Mar 11, 2020

The FTSE 100 has slipped marginally into the red in today’s session, pressured by losses in energy and mining shares. Sentiment has remained subdued following the US jobs report which has fallen short of expectations.

FTSE 100 subdued on Friday

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As of 14:53 BST, the Footsie had given up 2.37 points to stand 0.03 percent lower at 7,268.8 points. Despite today’s drop, the blue-chip index is on track to post a rise for the first week of September, which follows a hefty fall in the FTSE 100 last month.

Reuters noted that oil heavyweights and mining giants were contributing the most to the index’s falls with concerns over global demand continuing to plague investors.

The FTSE 100 has remained in negative territory after the Bureau for Labour Statistics report that total non-farm employment in the US had climbed by 130,000 last month, while the unemployment rate remained unchanged at 3.7 percent.  The result undershot expectations for 158,000 new jobs, as reported by Reuters.

“The economic mood continues to worry investors with the threat that the global manufacturing slowdown spreads to the service economy, the yield curve inversion, and ongoing trade tensions setting an ominous tone,” Nancy Curtin, chief investment officer of Close Brothers Asset Management, commented, as quoted by Proactive Investors. “The fundamentals of the US economy remain robust on the consumer side, but [Federal Reserve Chair Jerome] Powell will likely respond to any threat to the expansion from these more global influences.”

Individual Footsie movers

In individual blue-chip movers, Berkeley Group (LON:BKG) is outperforming the market with a 2.32-percent gain after posting an upbeat statement ahead of its annual general meeting. British Airways parent International Consolidated Airlines (LON:IAG), however, is flying 0.88 percent lower even as it posted a rise in passenger traffic for August.

The FTSE 100 was 0.02 percent down at 7,269.63 points as of 15:05 BST on Friday, September 6, 2019.

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