Positive job figures push markets higher

The London markets and sterling both closed higher despite slow starts after traders welcomed positive figures for the economy for a second consecutive day.

The FTSE 100 closed 32.14 points higher at 7,267.95 yesterday.

Record high employment figures from the Office for National Statistics (ONS) added to market optimism after a surprise return to GDP growth was reported on Monday.

The number of people in work rose by 31,000 to 32.78 million in the three months to July, the ONS said.

Connor Campbell, financial analyst at Spreadex, said: “Though there were warning signs that the labour market is cooling, the headline figures were pretty stellar.”

Sterling benefited, pushing higher against both the dollar and euro. The pound was 0.09% up versus the US dollar at 1.235, and up 0.11% against the euro at 1.118.

The European markets were largely positive, closing higher ahead of the European Central Bank’s interest rate decision tomorrow. The German Dax increased by 0.35% while the French Cac was 0.08% higher.

The Dow Jones opened lower as it shed around 100 points on the back of worrying Chinese factory readings.

The price of a barrel of Brent crude oil jumped by 0.18% to 62.75 US dollars.

The biggest risers on the FTSE 100 were JD Sports, up 55.6p at 688.2p, Barclays, up 6.9p at 147.68p, Lloyds Banking Group, up 1.75p at 51.93p, and IAG, up 17.2p at 440.7p. The biggest fallers were Just Eat, down 50p at 710p, Aveva, down 184p at 3,474p, Sage Group, down 28.4p at 664.4p, and Experian, down 105p at 2,470p.