FTSE above 7,700 despite US jobs blip

THE FTSE 100 climbed above 7,700 to a second straight record close yesterday as buoyant markets shrugged off a disappointing jobs report in the US.

The weaker than expected labour figures could not dent the dominant narrative on the markets of strong global growth, and Europe’s major stock indices chalked up gains of above 1pc for a second consecutive day. The FTSE 100 lagged its peers across the Channel but could not help be caught up in the bullish exuberance on the markets, advancing 0.4pc to 7,724.22 points.

Investor sentiment has soared on the back of economic indicators around the world suggesting that growth will continue to chug along in 2018. A succession of stock market records have tumbled in recent days with the FTSE 100, Dow Jones and Nikkei 225 all racking up new highs.

The US economy added just 148,000 jobs in December despite economists and unofficial numbers from the ADP on Thursday predicting a much higher total.

Traders brushed aside the weaker than expected headline figure after November’s total was revised upwards and wage growth remained solid at 2.5pc.

The dip in job creation is likely to be temporary given that the economy is growing strongly at above 3pc and business sentiment remains high, ING economist James Knightley argued.

The Dow Jones also pushed up to another record intraday high yesterday after smashing through the 25,000 barrier for the first time on Thursday.