Last checked at 
(Alliance News) - London's FTSE 100 came off session lows during an underwhelming day for European equities, with a hotter-than-expected US jobs report and news that China may relax strict Covid-19 measures acting as opposing forces at the end of the week.
US nonfarm payrolls were higher than expected last month, strengthening the case for another turbo-charged Federal Reserve rate hike before the end of the year.
The FTSE 100 index closed down just 2.26 points at 7,556.23. The FTSE 250 closed down 46.14 points, 0.2%, at 19,363.28, though the AIM All-Share closed up 2.76 points, 0.3%, at 853.32.
The FTSE 100 ended the week 0.9% higher, and the AIM All-Share rose 0.7%. However, the FTSE 250 fell 0.9%.
The Cboe UK 100 ended up 0.1% at 756.03, the Cboe UK 250 closed up 0.4% at 16,791.28, and the Cboe Small Companies closed 0.2% higher at 13,050.91.
In European equities on Friday, the CAC 40 in Paris ended down 0.2%, while the DAX 40 in Frankfurt closed up 0.3%. Both also closed off session lows.
The pound was quoted at USD1.2240 at the time of the London equities close on Friday, lower than USD1.2266 at the London equities close on Thursday. The euro stood at USD1.0478, down against USD1.0487. Against the yen, the dollar was trading at JPY135.41, down from JPY135.93.
"Up until lunchtime, this week had been about a weakening dollar and a steady shift by the Fed away from the hawkishness of much of 2022. But today's job and wage numbers have given the greenback a lift, while sending stocks into retreat in the US. Gains have been trimmed in Europe, but it is the US where the losses have been felt. This was not the report investors had been hoping for it seems, since it suggests that inflation, and with it the Fed's push to raise rates, is nowhere near done yet," IG analyst Chris Beauchamp commented.
Total nonfarm payroll employment in the US increased by 263,000 last month, lower than the revised rise of 284,000 in October, but beating market consensus for 200,000 net new jobs, as cited by FXStreet.
October's reading was previously reported as an addition of 261,000 jobs. September was revised to positive 269,000.
The US employment rate remained unchanged from October at 3.7%, which was in line with FXStreet-cited consensus.
The hot jobs report comes after Fed Chair Jerome Powell boosted risk appetite on Wednesday by saying "the time for moderating the pace of rate increases may come as soon as the December meeting".
Stocks in New York were weaker. The Dow Jones Industrial Average was down 0.5% at the time of the London equities close. The S&P 500 shed 0.8%, while the Nasdaq Composite lost 1.0%.
President Xi Jinping suggested the spread of the less lethal Omicron strain might allow China to loosen its zero-Covid policy, senior EU officials reported Friday, as cities across the country made further moves towards unwinding some restrictions.
Discontent with China's hardline pandemic response spilled onto the streets last weekend and expanded into calls for more political freedom, in widespread demonstrations not seen in decades.
China's vast security apparatus has moved swiftly to smother the rallies, deploying a heavy police presence while boosting online censorship and surveillance of the population.
In his first known comments on the protests, Xi told EU chief Charles Michel that the demonstrators were "mainly students or teenagers in university" who were fed up with Covid restrictions when the pair met in Beijing on Thursday, senior officials speaking on condition of anonymity said.
"If China's authorities were to accelerate the abandonment of their zero-Covid policies, we think it could actually prove a headwind for global asset prices. But we doubt they will do so for a while yet," Capital Economics analyst Thomas Matthews commented.
The news out of China failed to boost Brent prices. A barrel of the North Sea benchmark fell to USD86.65 late Friday, from USD88.89 on Thursday.
Oil and gas firms also fell. BP lost 1.8%, Shell gave back 0.7% and Energean returned 8.3%.
Paris-listed TotalEnergies said it will cut North Sea oil and gas investment by 25% next year after the UK government extended a windfall tax on energy firms.
TotalEnergies will cut its North Sea investment by GBP100 million in 2023 after Chancellor Jeremy Hunt ramped up a windfall tax on oil and gas giants, whose profits have surged on fallout from the Ukraine war.
Shares in TotalEnergies closed 0.6% lower in Paris.
Primark owner AB Foods added 5.0%. Goldman Sachs raised the stock to 'neutral' from 'sell'.
Also shielding the FTSE from a chunkier loss on Friday were gains for banking stocks. NatWest added 1.8% and Lloyds rose 1.1%. Shares in the duo had fallen 1.7% on Thursday.
Elsewhere in London, Premier Miton Group rose 15%.
The asset manager said pretax profit in the financial year that ended September 30 fell by 15% to GBP14.9 million from GBP17.5 million a year earlier, while assets under management on September 30 were GBP10.57 billion, down 24% from GBP13.93 billion.
Assets under management have partially recovered since, however, to around GBP11.3 billion by November 25, thanks to net positive flows during the first two months of financial 2023.
Gold was priced at USD1,788.36 an ounce at late on Friday, down from USD1,796.43 late Thursday.
Monday's economic calendar has a slew of services PMIs, including the eurozone at 0900 GMT, the UK at 0930 GMT and the US at 1445 GMT. The week picks up pace with an interest rate decision from the Reserve Bank of Australia on Tuesday, a single currency area GDP reading on Wednesday, and inflation data out of China on Friday.
Monday's local corporate calendar has annual results from platinum miner Tharisa.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
