FTSE touches record high despite US jobs growth slowing

LONDON’S leading index surged to an all-time intraday high, but fell short of crossing the landmark 7,600 level as disappointing US jobs growth data sapped risk appetite in afternoon trade.

Non-farm payrolls increased 138,000 last month, the Labor Department said, marking a sharp deceleration from April’s 174,000 and below forecasts of 181,000. The US unemployment rate fell to a 16-year low of 4.3pc.

The FTSE 100, which rallied to an intraday record high of 7,598.99 in early trade, retreated following the US jobs report. However, it remained in positive territory, buoyed by persistent pound weakness. Pressure on the local currency has been building in recent days, as opinion polls pointed to a tighterthan-expected race in next week’s General Election.

The blue chip index closed up 3.86 points, or 0.05pc, at 7,547.63, matching its record closing high set a week ago. Meanwhile, the FTSE 250 index also powered to a new record high of 20,081.74 in intraday trade, the MSCI All-country World index climbed 0.4pc to its highest-ever levels, and Wall Street shrugged off the tepid jobs report to open at record peaks.

However, gains worldwide were capped by a slide in oil prices. Brent crude tumbled below $50 a-barrel after Donald Trump’s decision to withdraw the US from the Paris climate change accord sparked fears the US could expand its oil production more rapidly. In its wake, oil majors BP slipped 7.3p to 462.8p, Royal Dutch Shell

B shares surrendered 22.5p to £21.36 and Tullow Oil lost 10p to 176p.

Miners also ended the week on the back foot as copper prices fell on concerns over weakening demand and oversupply.

Antofagasta shed 12.5p to 805p and Anglo American dropped 4.5p to £10.30.

B&M European Value Retail tumbled 9.1p to 361.3p after two major shareholders cut their stake in the business. The billionaire Arora brothers, who transformed the group into a national discount retail chain, cashed in around £227m of shares in the business, reducing their stake from 21pc to 15pc, while private equity firm Clayton, Dubilier & Rice offloaded more than half of its shares, bringing its stake to just under 5pc.

Elsewhere, Hong Kong billionaire Sammy Tak Lee upped his stake in

Shaftesbury, the property company that owns swathes of London’s West End, to over 19pc fuelling further speculation he may be preparing a bid. Shares dipped 4.5p to 967.5p.

Ryanair lost altitude, down 3c to €18.25, after UBS downgraded its rating to “neutral” as it sees a balanced risk-reward payoff. Meanwhile, HSBC lifted

easyjet’s price target from £14.50 to £15.50 as it believes momentum will continue as the sector consolidates. Nevertheless, shares dipped 1p to £13.89.

Sage Group added 0.5p to 729p after it offloaded its US payments unit for $260m. Finally, wealth manager

Rathbone Brothers rallied to a record high of £26.48, up 50p on the day, after Macquarie hiked its price target to £24 from £21.50.