The FTSE 100 reversed early losses on Thursday as UK markets shook off weakness in Asia and US stocks.
London’s leading index was 0.45% higher at the time of writing after starting the session in the red.
“Asian markets wobbled on renewed fears around excessive AI spending and whether all the good news for the chip supply firms was fully priced in,” said Russ Mould, investment director at AJ Bell.
“European markets managed to keep their cool and push ahead as investors rotated away from tech into more defensive-style sectors. Healthcare and utilities were in demand, with AstraZeneca doing a lot of the heavy lifting for the FTSE 100.”
Compass Group was the FTSE 100’s top riser, rising 3%. Airtel Africa was 2% higher as shares stabilised after a period of selling.
The UK defence spending review continued to provide support for BAE Systems and Babcock, with both rising by over 2%.
The FTSE 100’s AI-related shares were weaker after a bout of selling of tech shares on Wall Street. RELX was the FTSE 100’s top faller, losing 2.3%.
Away from the UK, attention will be on the US jobs numbers, which will be released on Thursday instead of Friday due to a US public holiday.
Today’s jobs report will be particularly interesting because it will be released against a backdrop of slight uncertainity around interest rates as the new Fed Chair settles into his new role.
“That makes today’s US jobs report particularly important,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
“After several months of resilient labour market data, investors will be looking to see whether employment remains strong enough to support the Fed’s higher-for-longer stance. A stronger-than-expected report would reinforce expectations that policy may need to remain restrictive for an extended period, while a softer reading could ease some of the recent upward pressure on yields and the dollar.”