Advertisement

FTSE-100 CLOSE: Stocks around the world jump after huge US jobs number and as Trump promises 'rocket ship' recovery

Getty Images
Getty Images

The FTSE-100 index leapt after a huge US jobs number sent investor sentiment sky high.

The US added 2.5 million jobs in May. Trump said the US was now on course for a 'rocket ship' recovery.

The premier index finished up 142.86 points at 6484.30.

On Wall Street, the Dow Jones rose 964.5 points, or 3.67%, to 27,246.32, the S&P gained 89.61 points, or 2.88%, at 3,201.96 and the Nasdaq Composite added 196.66 points, or 2.05%, at 9,812.47.

Meanwhile the ECB programme announced by new chief Christine Lagarde had the desired effect of reducing borrowing costs for Greece and Italy but seemed to leave equities unimpressed at first. Today, however, French and German indices leaped 2% and 1.5% as markets weighed up the moves.

The euro rose to its highest levels since early March, although CMC Market analyst Michael Hewson pointed out that this could be more do with German fiscal stimulus announced the night before. The euro has now gained against the dollar for eight days in a row.

Hopes of a reopening of global travel has seen American Airlines rise 60% this week and British Airways owner IAG gain more than a quarter, again suggesting share prices may have run away, even with all the QE and other support provided by governments. IAG today jumped 11% on further hopes for travel restrictions lifted between the UK and Mediterranean hotspots. Carnival surged 11% too, while easyJet gained 8% and aero engines maker Rolls-Royce leaped 8%.

It was, as they say in the markets, a "risk-on" day, where investors pull out of the dependable plodders such as utility firms and consumer goods giants and back the faster growth shares. Severn Trent, Reckits and Pennon all fell 2% accordingly.

Likewise on the FTSE-250, Aston Martin surged 13% after yesterday's job losses announcement, and covid-hit WH Smith and Upper Crust group SSP - both big in airports and train stations, leaped 10% and 8% respectively.

Read more

Jonathan Prynn: Road ahead for UK motor industry looks hazardous

New car sales at monthly lowest since 1952

Analysis: Is the stock market just madly optimistic?

Analysis: Could London’s City boys start trading at 9am?