London close: stocks make gains as US payroll misses forecast
London stocks managed to enter positive territory at Friday’s close as investors digest new US jobs data, while travel remained on the decline after the government’s latest announcement.
the FTSE 100 ended the session up 0.07% to 7,069.04, and the FTSE 250 was 0.13% firmer at 22,832.73.
The British pound was also in the green, last trading 0.5% stronger against the dollar at $ 1.4176, and advancing 0.13% against the euro at € 1.1646.
“The latest US non-farm payroll report for May has turned out to be a bit of a wet firecracker, adding fewer than 559,000 jobs than expected in May, helping to support the view that for all recent speeches on a possible central bank withdrawal of the support measures, such action was likely to be later than earlier ”, declared CMC Markets chief market analyst Michael Hewson.
“The slight error in the overall figure caused yields to drop and in so doing weighed on Financials, which is now Europe’s worst performing sector, with HSBC, Standard Chartered and Lloyds Banking Group all being underperforming.
“While airline stocks are still under pressure from yesterday’s traffic light system changes, companies like Ocado and Just Eat are among the top performers based on expectations of slower easing of restrictions. . “
Hires in the United States rebounded slightly less than expected last month, driven by a jump in leisure and hospitality as the economy continued to reopen, according to nonfarm wage data released earlier in the ‘afternoon.
Non-farm payrolls increased by 559,000 in May, exceeding economists’ forecasts for a gain of 663,000, according to the Ministry of Labor, although payroll figures for the previous two months have been revised upward. of 27,000 handsets.
Average hourly earnings exceeded expectations, up 0.5% month-on-month against a consensus growth forecast of 0.2%.
“April’s figures were a shock, representing a quarter of the expected increase despite exceptional economic growth and otherwise positive employment data,” said Close Brothers Asset Management investment director Robert Alster.
“Now we are apparently back on track, and the signals point to a bright future for the United States.
“While an increase in disposable income and consumer spending is positive, if wage growth drives inflation to persistently, the Fed may be forced to intervene with a monetary fire extinguisher, risking dampening the recovery before it really starts. “
On the national coasts, a survey released earlier showed that activity in the construction sector increased in May at the fastest pace in nearly seven years amid a record increase in new orders.
the IHS / CIPS market The Construction Purchasing Managers Index hit 64.2 61.6 in April, beating consensus expectations of 62.3.
A reading above 50.0 indicates growth, while a lower reading indicates contraction.
The survey found that new order volumes have grown at the fastest rate since the survey began just over 24 years ago.
Homebuilding was the best-performing category, with its index rising from 61.2 to 66.3, followed by commercial works, whose index climbed to 64.4 in May from 62.2 in April.
On the stock markets, the owner of British Airways AGI, engine manufacturer Rolls Royce, and low cost airlines easyJet and Wizz Air were all down, falling by 0.93%, 2.15%, 2.63% and 3.27% respectively.
The measures came on the heels of disappointment over the government’s updated travel list on Thursday evening, which saw no new countries added to the “safe” green list, while Portugal went from green to amber.
Home lender Financial foresight was downgraded by 1.07% by downgrading its rating to Skin hunting.
Packing group Smurfit Kappa slipped 0.88% after agreeing to buy Peruvian packaging company Cartones del Pacifico in Peru for an undisclosed amount.
ContourGlobal lost 0.31% after announcing that it had agreed, in partnership with Energy Infrastructure Partners, to buy Green Hunter Group, a portfolio of solar photovoltaic (PV) assets in Italy totaling 18 MW for € 49.7 million.
On the upside, pro-lockdown actions were in the green with the prospect of more Britons staying home over the summer and the June 21 reopening for England possibly being delayed.
Online supermarket Ocado was up 3.04% and the restaurant delivery business Just eat take out added 2% by the end of the negotiation.
FTSE 100 (UKX) 7,069.04 0.07%
FTSE 250 (MCX) 22 832.73 0.13%
techMARK (TASX) 4,387.61 0.54%
FTSE 100 – Risers
Ocado Group (OCDO) 1,884.00p 3.04%
Renishaw (RSW) 5,595.00p 2.85%
Just Eat Takeaway.Com NV (CDI) (JET) 6,416.00 p 2.08%
Entain (ENT) 1,733.00p 2.03%
Flutter Entertainment (CDI) (FLTR) 13 310.00 p 1.91%
Next (NXT) 8,214.00 p 1.86%
London Stock Exchange Group (LSEG) 7,574.00p 1.83%
Aveva Group (AVV) 3,501,00p 1.74%
Anglo-American (AAL) 3,254,50p 1.67%
Glencore (GLEN) 330.20p 1.58%
FTSE 100 – Fallers
Rolls-Royce Holdings (RR.) 107.32p -2.15%
VAN of Pershing Square Holdings Ltd (PSH) 2,555.00p -2.11%
Associated British Foods (ABF) 2,299.00p -2.00%
Bunzl (BNZL) 2 265.00p -1.99%
Weir group (WEIR) 1,914.00p -1.77%
Legal & General Group (LGEN) 279.10p -1.62%
Sainsbury (J) (SBRY) 265.60p -1.56%
Standard Chartered (STAN) 496.70p -1.53%
TA (PA.) 319.45p -1.43%
Phoenix Group Holdings (PHNX) 741.40p -1.41%
FTSE 250 – Lifts
CMC Markets (CMCX) 497.00p 4.85%
Premier Foods (PFD) 110.60p 3.75%
Hochschild Mines (HOC) 199.30p 3.59%
International Holdings Network (NETW) 396.80p 3.33%
Centamine (DI) (CEY) 115.50p 2.90%
Syncona Limited VAN (SYNC) 219.50p 2.81%
AJ Bell (AJB) 435.80p 2.78%
Biffa (BIFF) 295.00p 2.61%
Marshalls (MSLH) 729.50p 2.46%
SSP Group (SSPG) 299.40p 2.43%
FTSE 250 – Fallers
Just Group (JUST) 102.20p -4.22%
Wizz Air Holdings (WIZZ) 4,531.00p -3.31%
Volution Group (FAN) 420.00p -2.89%
Oxford Instruments (OXIG) 2,070.00p -2.82%
easyJet (EZJ) 934.00p -2.63%
Cineworld Group (CINE) 93.04p -2.56%
Train line (TRN) 271.00p -2.31%
International Hall of Fame (NIP) 2,630.00 p -2.05%
Inchcap (INCH) 780.50p -2.01%
Tyman (TYMN) 494.00p -1.98%