The FTSE 100 gained 0.3% to 7,536 on Friday despite a softer than expected US job data release on Friday. The commodity focused FTSE also shook off a falling oil price to finish the week in positive territory.
Warning signs of a recession have been flashing with the US 5-year and 30-year Treasury yields inverting for the first time since 2006. With worries of an approaching downturn, investors would have watched Friday’s US job data closely for insight on the health of the world’s biggest economy.
The Non-Farm Payroll revealed an increase of 431,000 jobs in March, missing estimates but positively impacting the unemployment rate as it almost reached pre-pandemic levels.
“Wage growth exceeding forecasts could cause markets to wobble but equally that might encourage the Fed not to be overly aggressive at its next policy meeting,” commented Mould.
Oil prices bounced back and increased 0.3% to $105 a barrel on Friday, following sharp declines this week on news of Biden’s plan to supply oil from the US Strategic Petroleum Reserve.
FTSE 100 Risers
Reckitt Benckiser shares increased 3.1% to 6,015. Miners Anglo American and Rio Tinto gained 2.9% to 4,087p and 2.1% to 6,211p respectively.
The retail sector seems to be picking up today despite the rise in the cost of living with Next shares were up 1.9% to 6,141p, JD Sports increased 2% to 151p and Kingfisher shares gained 1.6% to 260p.
Unilever shares rose 1.9% to 3,519p as Morgan Stanley cut the company’s recommendation to ‘over-weight’.
Housebuilding shares had some reprieve on Friday as the sector rebounded from a recent sharp sell off, with Taylor Wimpey leading the sector with gains of 2% to 133p, aside from the exception of Barratt Developments with shares falling 0.1% to 521p.
FTSE 100 Fallers
Aviva shares are down 1.6% to 444p as the company announced the successful completion of its £1bn buyback programme for an average of 408p per share.
3i Group shares decreased 0.67% to 1,379p after the company provided an update on its portfolio regarding no investments in listed close-ended investment funds.
Electrocomponent shares were down 4% to 1,040p. Catering providers, Compass Group shares fell 3.1% to 1,598p. Prudential shares lost 1.1% to 1,121p.
Pearson shares fell 0.8% to 743p as it continued to drop after Apollo withdrew its interest in the company.