Improving US outlook for jobs spurs rally in stocks

FTSE investors on Friday decided they had enough of their plummeting stock, pushing London’s top index back up after what has been a nightmare week.

Shares rallied, with the FTSE 100 closing up 1.43 per cent, or 102 points to 7240.

It came after the exchange on Thursday looked to be on course for its worst week in over two months, after a terrible Monday and Tuesday.

But jobs numbers in the US helped end the week on a high for global stocks.

Nonfarm payrolls, one of the closest watched jobs figures on the other side of the pond, hit 266,000, against 181,000 expected. Meanwhile unemployment fell to 3.5 per cent from 3.6 per cent.

“Combine that promising jobs picture with Donald Trump claiming that trade talks are ‘moving right along’ and China waiving tariffs on some US soybean and pork shipments, and the markets finally began to find some festive cheer sorely

lacking so far in December,’’ said Connor Campbell, an analyst at SpreadEx.

The FTSE was also likely boosted by a 0.25 per cent fall in the value of the pound against the dollar to 1.3123.

Germany’s Dax closed up 0.88 per cent, while French index Cac was up by 1.08 per cent.

In company news, Eddie Stobart shareholders have approved a £55 million rescue sale in a bid to secure the future of its 6,500 employees.

The Carlisle trucking firm, famed for its green and red lorries, had been on the brink of collapse after struggling to deal with a £200 million debt pile and recent accounting errors.

Homebuilders in London have been hesitating to embark on new projects despite a thirst for property in the capital, developer Berkeley Group has warned.

The company said the extended Brexit deadline, adding to three years of uncertainty for the sector, and next week’s General Election have put pressures on developers.

“This is damaging to our economy and London where fewer developers are prepared or able to accept the high operational risk of bringing forward new homes, with supply falling as a consequence,’’ Berkeley said in a statement.

Primark owner Associated British Foods has told shareholders it is on course to hit expectations, with strong growth expected in its sugar division, although profits at the fashion chain will take a slight hit.

At the company’s annual general meeting, chairman Michael McLintock said: “This year, AB Sugar will benefit materially from the increase seen last year in EU sugar prices and from further cost reduction.

Phoenix Group has cemented itself as Europe’s biggest owner of life assurance funds closed to new customers with a £3.2 billion deal to buy up rival ReAssure.

Swiss Re, the world’s secondlargest reinsurer, had wanted to spin off its ReAssure division earlier this year with a stock market flotation, but pulled it in the summer.

Oil standard Brent crude was up 1.69 per cent to 64.30 dollars after oil cartel Opec and Russia agreed to slash crude production by an extra 500,000 barrels a day.

The biggest risers on the FTSE 100 were DS Smith, up 18.2p to 370.00p, Evraz, up 15.6p to 357.00p, Antofagasta, up 30.6p to 898.60p, WPP, up 27.8p to 977.80p, and Kingfisher, up 5.6p to 212.70p.

The biggest fallers on the FTSE 100 were NMC Healthcare, down 65p to 2,530.00p, Fresnillo, down 7.8p to 555.40p, DCC, down 22p to 6,400.00p, ITV, down 0.3p to 143.00p, and Ocado, down 1p to 1220.00p.