FTSE 100 inches higher as miners gain, US jobs data allays recession fears
(Reuters) – London’s FTSE 100 inched higher on Friday, as better-than-expected U.S. jobs data allayed fears of recession in the world’s top economy, while industrial metal miners further boosted recovery.
The blue-chip was up 0.3%, while the mid-cap rose 0.2% by 0709 GMT.
However, both indexes are set to post weekly declines for a second straight week.
Data showed on Thursday that weekly U.S. jobless claims fell more-than-expected, suggesting that fears of an unravelling labor market were overblown and allayed some fears of a potential U.S. recession.
Weak economic data last week spurring recession fears in the U.S. and the unwinding of Japan’s yen carry trade triggered a battering sell-off across stock markets on Monday.
On Friday, industrial metal miners led gains in London, rising 1.9% rise, as prices rebounded and base metals rose supported by rate-cut hopes and better-than-expected U.S. data. [MET/L]
Rate sensitive real estate investment trusts and real estate sectors also moved up 1%, each.
Energy and precious metal miners also gained 0.4% and 0.8%, respectively, as oil prices rose and gold stabilized. [O/R] [GOL/]
On the flip side, personal care, drugs and grocery stocks led declines, down 0.4%.
Investors are looking forward to next week, packed with inflation data both in the U.S. and the UK, alongside Britain’s gross domestic product numbers.
Among other stocks, Hargreaves Lansdown gained 1.8%after the investment platform agreed to a 5.44 billion pound ($6.94 billion) takeover by a consortium.
Beazly was the top gainer on the FTSE 100 for a second session in a row, rising 2.3%, after jumping more than 10% on Thursday.
