Monday 25 September 2017

European stock markets surge as US jobs growth beats forecasts

'Figures from the United States showed that there were 209,000 new jobs created there last month. That was more than the 183,000 anticipated by economists.' Photo: Irochka - Fotolia
'Figures from the United States showed that there were 209,000 new jobs created there last month. That was more than the 183,000 anticipated by economists.' Photo: Irochka - Fotolia

Reuters

European stock markets surged yesterday, buoyed by US jobs growth as well as advances by food and beverages, and resources stocks.

Figures from the United States showed that there were 209,000 new jobs created there last month. That was more than the 183,000 anticipated by economists.

In the UK, shares in housebuilders fell, initially dragging down the FTSE-100, but it regained lost ground later to end in positive territory as results from Royal Bank of Scotland and Merlin Entertainments shored it up.

The strong US jobs numbers are likely to clear the way for the Federal Reserve to announce a plan to start shrinking its $4.5trn bond portfolio in September, and could strengthen its case to raise rates for the third time this year in December.

Chances of a rate hike by the end of the year increased to 50pc from 46pc after the release of the data, according to CME Group's FedWatch tool.

In Ireland, the ISEQ Overall Index entered the weekend 1.1pc higher at 6,724.39, joining the wider European advance.

Shares in exploration minnow Providence Resources slumped 38pc to 11 cent after it reported disappointing well drilling results.

Gainers included Bank of Ireland, which advanced 2.6pc to €7.00, while Swiss-Irish baked goods group Aryzta rose 2.1pc to €28.12.

Shares in Cairn Homes were down 1.2pc at €1.65.

The UK's FTSE-100 ended the session 0.5pc higher. Germany's DAX was up 1.18pc and France's CAC-40 gained 1.42pc.

A fall in sterling and strength in the dollar following the US jobs report boosted shares in overseas UK earners, with a rise in stocks such as British American Tobacco and Diageo helping lift the FTSE-100 into positive territory.

Energy firms and financials also underpinned the FTSE-100 rally.

Irish Independent

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