LONDON MARKETS: FTSE 100 Aims For 9-day Win Streak After Erasing Losses On U.S. Jobs Report
January 06 2017 - 8:39AM
Dow Jones News
By Sara Sjolin, MarketWatch
U.K. stocks erased earlier losses and bounced higher in Friday
afternoon action after the closely watched U.S. jobs report fueled
optimism over the country's labor market.
Although the headline nonfarm payrolls number disappointed at
156,000
(http://www.marketwatch.com/story/us-adds-156000-jobs-in-december-2017-01-06-81033418)
in December, average wages rose much faster than expected. The
labor market participation rate also advanced, indicating more
people are rejoining the labor force as the economy continues to
improve.
"The overall jobs report can be considered a strong one with the
all-important average earnings jumping from a negative reading last
month of -0.1% to 0.4% this month," said James Hughes, chief market
analyst at GKFX, in a note.
"With more rate hikes on the horizon it becomes increasingly
important for earnings to move in line with debt payments," he
added.
The Federal Reserve is expected to raise interest rates three
times in 2017, which means debt payments will increase.
The report pulled the FTSE 100 index out of the red to trade
0.1% higher at 7,199.53, setting it on track for a ninth straight
win and a record close. On Thursday, the benchmark logged a sixth
consecutive record close, the longest streak since 1997.
The London benchmark was set for a 0.8% advance for the
holiday-shortened week.
Bank cheer: Lloyds Banking Group PLC (LLOY.LN) rose 1.6% after
Barclays lifted the lender to overweight from equal weight.
Barclays said the U.K.'s economic prospects remain challenging, but
are less severe than previously expected.
HSBC Holdings PLC (HSBA.LN) (HSBA.LN) (HSBA.LN) gained 0.7% and
Barclays PLC (BCS) (BCS) picked up 1.4%.
Miners weigh: Gold miners topped the list of decliners as the
metal gave up 0.7% to trade at around $1,173 an ounce
(http://www.marketwatch.com/story/gold-on-track-to-end-4-day-win-streak-but-post-best-week-in-6-months-2017-01-06).
Shares of Fresnillo PLC (FRES.LN) fell 2.7%, and Randgold Resources
Ltd. (RRS.LN) (RRS.LN) lost 2.3%.
Other movers: Shares of easyJet PLC (EZJ.LN) climbed 0.7% after
the budget airline said traffic went up 15.1% in December
year-over-year.
TUI AG fell 0.4% after UBS cut the travel operator to neutral
from buy.
On the FTSE 250 index , Rotork PLC (ROR.LN) jumped 3.6% after
Goldman Sachs started coverage of the manufacturing company with a
buy rating.
(END) Dow Jones Newswires
January 06, 2017 09:24 ET (14:24 GMT)
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