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(Alliance News) - Stock prices in London closed higher on Friday as stronger data from the US, UK and China helped temporarily allay persistent fears about the prospects of global growth.
The FTSE 100 index closed 0.8% higher at 7,302.42 Friday. The mid-cap FTSE 250 index closed 0.7% higher at 20,158.77. The AIM All-Share index closed 0.1% higher at 890.70.
For the week, the blue chips closed 0.4% lower. The mid-cap index finished marginally lower and the AIM All-Share 0.3% lower.
The Cboe UK 100 closed 0.3% higher at 12,358.16, the Cboe UK 250 0.4% higher at 18,086.03, and the Cboe UK Small Companies up 0.6% at 11,251.99.
The pound was quoted at USD1.2941 at the London close, higher from USD1.2927 late Thursday.
"It is never wise to underestimate the US economy," IG Chief Market Analyst Chris Beauchamp said. "This month's jobs report came in ahead of expectations, proving that there is still plenty of strength in the world's largest economy, and US financial markets have responded with a will to the news."
Data from the US Bureau of Labor Statistics on Friday showed nonfarm payroll employment expansion slowed to 128,000 jobs in October, compared to the upwardly-revised 180,000 jobs added in September.
According to FXStreet compiled consensus data, economists expected net job adds in October to slow to 89,000 in October from the initially reported 136,000 adds in September.
"While monthly wage growth was a touch softer, the overall impression backs up that given by the Fed earlier in the week, one of a healthy economy that does not look like it is heading into recession," Beauchamp added.
On the manufacturing front, both the ISM and Markit manufacturing purchasing managers' indexes also improved in October - if falling short of consensus forecasts.
The ISM US manufacturing PMI rose to 48.3 from 47.8 in September, meanwhile the IHS Markit final US manufacturing PMI strengthened to 51.3 in October from 51.1 in September. Any figure above 50 represents expansion rather than contraction in the sector.
Economist consensus was for an ISM print of 48.9 and a Markit figure of 51.5 in October.
On Wall Street, the Dow Jones was trading 0.9% higher, the S&P 500 up 0.6%, whilst the Nasdaq was 0.6% higher.
The flurry of more upbeat US data compounded a generally buoyant sentiment in the market caused by similarly positive Chinese industrial figures.
Earlier on Friday, the Caixin China General Manufacturing purchasing managers' index rose to 51.7 in October from 51.4 in September, representing the third consecutive month in which conditions have improved.
Even locally, data helped bolster the chipper feeling to the end of the week.
Despite showing UK manufacturing was still contracting, the IHS Markit UK manufacturing PMI jumped to 49.6 points in October from 48.3 in September. The figure comfortable exceeded the expected 48.1 points fall deeper into contraction territory forecast by economists.
Amongst the companies moving in London, mining firms were higher as the manufacturing data from the two largest global economies improved the outlook for demand for industrial metals.
Rio Tinto ended 3.8% higher, Glencore up 3.6% and Anglo American up 3.1%. Similarly, steel maker Evraz was 3.4% higher and iron ore pellet maker Ferrexpo up 4.3%.
Industrial firms including IMI, Rolls-Royce and Smiths Group were also in the green with 2.5%, 2.2% and 1.6% share price gains on Friday.
In the red on Friday, FTSE 100-listed vehicle retailer Auto Trader closed 3.2% lower - at the bottom of the blue chips - and mid-cap Inchcape down 2.7% after a profit warning from smaller peer Lookers.
Lookers closed 1.8% lower after it expected underlying pretax profit to be around GBP20 million for the year ended September. This is down dramatically from the GBP67.3 million profit reported the year before.
The news resulted in Chief Executive Officer Andy Bruce and Chief Operating Officer Nigel McMinn leaving the firm immediately.
Lookers explained the profit warning was driven by "ongoing weakness in consumer confidence" amid "political and economic uncertainty" in the UK as well as used car margins pressure.
The firm added that although it had expected these conditions to continue during the second half of the year, trading "over recent weeks since mid-September, has been much more challenging than expected."
In the FTSE 250, interdealer broker TP ICAP ended 6.5% higher after reporting favourable market conditions helped third quarter revenue surge 17%.
With volatile market conditions, revenue for the three months ended September surged 17% on the year prior to GBP478 million. This takes revenue for 2019 to date to GBP1.40 billion, up 6% on the year before.
Despite the strong performance, however, TP ICAP retained its low single-digit revenue growth forecast for 2019 as a whole.
Home emergency repairs firm HomeServe closed 4.7% higher after Peel Hunt upgraded its recommendation on the company to Add from Hold, boosting its share price target to 1,250 pence from 1,150p prior.
The stockbroker made the move on the ability of HomeServe to outperform in the US as well as its flexible balance sheet to make additional acquisitions.
At the other end of the mid-cap index, however, shares in housebuilder Crest Nicholson continued to slide, ending down 2.2%, having shed 5.1% on Thursday after warning full year profit was expected to be lower than the year prior amid "volatile" market conditions in the UK.
Crest Nicholson now expects pretax profit to be between GBP110 million and GBP120 million, down from GBP176.4 million the year prior.
Publishing firm Euromoney Institutional Investor ended 3.8% lower after Swiss bank UBS cut its recommendation to Neutral from Buy on the FTSE 250-listed company, cutting its price target to 1,475 pence from 1,520p prior.
Elsewhere in London, shares in AIM-listed Argos Resources ended 37% higher after the government of the Falkland Islands extended the PL001 Licence held by the exploration firm to May 2021.
Shares in Finnish drugs developer Faron Pharmaceuticals ended down 18% at the end of a highly volatile day for the firm.
Earlier on Friday, Faron said it knew of no "operational or corporate reason" for the dramatic share price movement which had seen its shares gain as much as 59% earlier in the day.
In mainland Europe, in Paris the CAC 40 equities index ended up 0.5%, while the DAX 30 in Frankfurt ended up 0.7%.
The euro was quoted at USD1.1165, higher compared to USD1.1151 late Thursday. The dollar was trading at JPY108.12, higher compared to JPY108.09 late Thursday.
Brent oil was quoted at USD60.66 a barrel at the London equities close, higher than USD60.22 at the close Thursday.
Gold was quoted at USD1,511.25 an ounce at the London equities close, higher versus USD1,510.25 Thursday.
In the economic calendar on Monday, Japanese markets are closed as the country celebrates Culture Day.
Meanwhile, manufacturing PMI data are due from Germany at 0855 GMT, the eurozone at 0900 GMT and the UK at 0930 GMT. In the US, factory orders figures are printed at 1500 GMT.
In UK corporate events on Monday, interim results are due from budget airline Ryanair Holdings. Third quarter figures will be delivered by insurer Hiscox and oil & gas company Kosmos Energy. A trading statement is also due from promotional products maker 4imprint.
By Ahren Lester; ahrenlester@alliancenews.com
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