THERE was more drama for the London equity market yesterday as a confident opening was endangered by a sharp sell off on Wall Street after the latest economic news from the US.
But London managed to ride out what proved to be only a temporary storm induced by the economic news, which included the March non farm payroll report and details of average hourly earnings for that month.
A figure of 175,000 jobs created during March came in at the low end of market expectations, which had been as high as 200,000, while the 0.4 per cent increase in average hourly earnings was in line with forecasts.
In the event, Wall Street plunged almost 50 points as the market sifted through the details, burdened by a 24 tick retreat in the US long bond.
Sentiment began to recover, however, and London, which had seen an earlier gain of 33.0 whittled down to one of 7.4 shortly after the economic news flashed up on the trading screens, quickly stabilised and closed the session in good heart.
The FTSE 100 index ended the day a net 22.0 higher at 4,236.6. Other indices were similarly supported towards the close, after absorbing a bout of profit taking induced by the US. The FTSE Mid 250 finished 10.2 firmer at 4,514.8, after touching a session high of 4,520.9. The SmallCap index ignored the minute by minute action associated with the leaders, and held on to its session high, closing up 2.4 at 2,282.3.
After a difficult week, which has seen all European markets come under severe pressure, mostly caused by persistent concerns about the course of interest rates, the FTSE 100 has fallen 76.3, or 1.8 per cent, while the FTSE Mid 250 is off 61.4, or 1.3 per cent and the SmallCap 31.4, or 1.4 per cent.
