FTSE: 6,054.55 (+51.66) Mid-250: 12,167.81 (+36.12) Small Cap: 3,339.98 (+15.84)COMMODITY STOCKS led Britain's FTSE 100 sharply higher yesterday, as US jobs data boosted confidence that the world's biggest economy was showing signs of picking up heading into the second-half.
Integrated oils rose as reports showed US private employers stepped up hiring in June and the number of Americans filing for jobless benefits fell last week.
The data raised expectations for a strong reading in today’s US non-farm payroll figures. The sluggish rebound in the jobs market has been seen as a major factor in stifling the economic recovery in the United States, and the data bolstered views the economy is positioned for a pick-up in the second half.
“Our judgment is that there will be some indications of strengthening over the second half of the year as consumers adapt to higher taxes, and possibly, from a global perspective, as and when the US moves out of its soft patch,” said Philip Shaw, chief economist at Investec.
Miners, hurt by concerns earlier in the week that China’s steps to cool its overheating economy was stifling growth, rebounded strongly following the US jobs data, and as analysts sounded more upbeat on China.
London’s blue-chip index, which is heavily weighted towards commodity-related stocks, closed up 0.9 per cent, its highest closing level since May 5th.
The index has risen nearly 7 per cent since touching three-month lows 11 days ago, driven mainly by hopes that Greece will avoid defaulting on its debts.
Elsewhere, MA talk swirled around London-listed stocks, with traders citing UK auto and aerospace parts maker GKN, up 3.2 per cent, as a potential 350p per share bid target for Chinese automaker SAIC Motor.
Investors toasted the world’s biggest listed hedge fund manager Man, up 3.6 per cent, after reporting stronger than expected first-quarter inflows.
Anglo-French property investor Hammerson fell 4.8 per cent as Canada’s Cadillac Fairview, the Ontario Teachers’ Pension Plan, completed a placing of 85.6 million shares at 463p each.
Satellite broadcaster BSkyB fell 1.8 per cent on concerns News Corporation’s buyout deal could be hit by new phone-hacking allegations at one of its British titles, which have put pressure on Rupert Murdoch’s global media empire. – (Reuters)
