- Markets upbeat after US jobs data
- Asset managers lead gains
- Consumer staples and defensives unwanted
techMARK 2,851.59 +0.95%
FTSE 100 6,858.21 +0.66%
FTSE 250 16,232.90 +1.48%
Equities ended the session clearly higher, bolstered by a more or less in-line US non-farm payrolls report.
Nevertheless, the above data did mark the fourth consecutive month since November 1999-January 2000 during which job creation Stateside was at least 200,000.
The Footsie thus finished the week on a strong note but was only slightly up over the last five days, edging higher by just 13.7 points, although on Friday it did manage to advance by 44.12 points to reach the closing mark of 6,858.21.
Reacting to the above report Barclays Research explained to clients that: "while the report is likely to keep the tapering process on track, it is unlikely to alter the Fed's timeline for potential policy rate hikes significantly. We expect the Fed to taper its monthly purchase pace by another $10bn at its June meeting and conclude purchases in October. Our forecast also calls for the first rate increase in mid-2015."
The US bond market seemed to be in agreement with those forecasts, with the yield on US 10-year Treasuries steady at 2.58%.
However, while rate expectations may be quiescent across on the other side of the pond the Bank of England (BoE) on Friday revealed the proportion of Britons expecting an interest rate rise in the coming year is increasing.
A quarterly survey published by the central bank showed 42% of Britons in May predict interest rates will be raised from 0.5% in the next 12 months, compared to 40% in February and 37% in November.
In parallel, and regarding the state of the housing market - at the moment the main concern of policymakers at the Bank - Paul Fisher, deputy head of the BoE's Prudential Regulation Authority, explained to reporters that authorities will focus on whether household are overindebted and whether banks are over-stretching themselves too much, or not.
Asset managers lead gains
Gains on the FTSE 100 were led by asset managers, such as St.James's Place, Aberdeen Asset Management and Schroders, which benefitted from the improved sentiment towards the outlook for capital markets as a result of today´s US jobs report. On the other side of the ledger, the biggest losses were seen in consumer staples, with falls in Unilever, Diageo and Reckitt Benckiser.
Medical devices maker Smith & Nephew retreated as investors paused for breath after the stock's strong run over the last few weeks amid speculation about a potential offer from three rumoured bidders: Johnson & Johnson, Stryker and Medtronic. The stock, down 1% today, is still 18% higher than a month ago.
British Gas owner Centrica advanced on reports in the Daily Mail that it has attracted interest from Qatari investors.
Temporary power and temperature control group Aggreko was making gains after Jefferies maintained a 'buy' recommendation, saying that it sees "plenty of exciting opportunities" to grow the business after an analyst visit this week. "Faced with a less buoyant power projects market, Aggreko is getting on the front foot and creating completely new markets for itself," the broker said.Communication services group KCOM gained after saying that after a recent re-financing and with underlying cash flow strong, it is looking for investment opportunities to strengthen its position in target markets.
International healthcare services group Synergy Health impressed after it announced a multi-year contract with medical device manufacturer Sterilmed. Canaccord Genuity upgraded the stock from 'sell' to 'hold' today and hiked its target price.
FTSE 100 - Risers
St James's Place (STJ) 827.00p +4.03%
International Consolidated Airlines Group SA (CDI) (IAG) 418.90p +3.77%
Aberdeen Asset Management (ADN) 462.00p +3.59%
Persimmon (PSN) 1,296.00p +2.69%
Schroders (SDR) 2,674.00p +2.45%
RSA Insurance Group (RSA) 491.50p +2.44%
Hargreaves Lansdown (HL.) 1,299.00p +2.44%
Mondi (MNDI) 1,123.00p +2.37%
Barratt Developments (BDEV) 366.60p +2.17%
Whitbread (WTB) 4,350.00p +2.14%
FTSE 100 - Fallers
Fresnillo (FRES) 775.50p -2.08%
Smith & Nephew (SN.) 1,066.00p -2.02%
Unilever (ULVR) 2,632.00p -1.64%
Diageo (DGE) 1,875.00p -1.57%
Imperial Tobacco Group (IMT) 2,607.00p -1.29%
Randgold Resources Ltd. (RRS) 4,356.00p -1.16%
Burberry Group (BRBY) 1,479.00p -1.07%
Reckitt Benckiser Group (RB.) 5,070.00p -0.88%
Antofagasta (ANTO) 772.50p -0.71%
SABMiller (SAB) 3,235.00p -0.68%
FTSE 250 - Risers
Synergy Health (SYR) 1,396.00p +6.56%
Berkeley Group Holdings (The) (BKG) 2,376.00p +4.90%
Bellway (BWY) 1,500.00p +4.46%
Polymetal International (POLY) 548.50p +4.18%
Aveva Group (AVV) 2,289.00p +4.05%
Supergroup (SGP) 1,142.00p +4.01%
Henderson Group (HGG) 254.50p +3.92%
Enterprise Inns (ETI) 141.10p +3.83%
Redrow (RDW) 268.50p +3.63%
International Personal Finance (IPF) 631.50p +3.61%
FTSE 250 - Fallers
African Barrick Gold (ABG) 215.80p -1.69%
Lonmin (LMI) 251.60p -1.29%
Rathbone Brothers (RAT) 2,150.00p -0.74%
Diploma (DPLM) 644.00p -0.69%
Kazakhmys (KAZ) 278.30p -0.61%
esure Group (ESUR) 258.50p -0.58%
Croda International (CRDA) 2,518.00p -0.55%
Wood Group (John) (WG.) 793.50p -0.44%
Ophir Energy (OPHR) 250.00p -0.44%
Genus (GNS) 1,040.00p -0.38%