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London close: Stocks surge as strong US data offsets taper fears

Fri, 06th Dec 2013 16:55

- FTSE 100 rebounds strongly on US jobs beat- Taper expectations brought forward- Oil, housing stocks provide a lifttechMARK 2,670.64 +0.85%FTSE 100 6,551.99 +0.83%FTSE 250 15,317.05 +1.05%After falling to an eight-week low the previous session, the FTSE 100 rallied on Friday after a much better-than-expected US jobs report as the positive news on the economy trumped fears about an impending withdrawal of monetary stimulus.The FTSE 100 finished 53.66 points higher at 6,551.99 ahead hitting 6,498.33 on Thursday, its lowest level since October 11th. Stocks have fallen for five straight days on the back of heightened speculation that the Federal Reserve will soon begin to pare its asset purchase programme amid signs of a stronger economic recovery.Non-farm payrolls increased by 203,000 in November, compared with a revised 200,000 gain the month before and well ahead of the consensus forecast for 185,000. Meanwhile, the unemployment rate fell to 7% from 7.3%, below the 7.2% rate estimated by analysts.Marcus Bullus, Trading Director MB Capital, said that while the solid report will have undoubtedly increased taper speculation - especially given the resilient economic figures released over the last few days - markets have had plenty of time to factor in the move and the data shows that "the recovery [is] now well and truly entrenched".However, Colin Cieszynski, Senior Market Analyst at CMC Markets, said that after the recent moves across global indices this week, today's action "may be more of a bear market rally than renewed enthusiasm"."Trading action suggests that the declines of recent days had already priced in a strong report and perhaps even higher expectations," he said.Petrofac gains, housebuilders jumpOilfield services group Petrofac was a high riser, rebounding after some heavy falls on concerns about guidance at its investor day on Thursday. "Having hit a two-year low yesterday on rumours that management was reducing long-term earnings forecasts, Petrofac has been besieged by bargain-hunters," said Market Strategist Brenda Kelly from IG.Other oil stocks were also providing a lift today after HSBC reportedly raised its forecast for Brent oil prices for next year. Tullow, BP, BG and Shell were among the best performers. Shell was making headlines after ditching plans to build a $20bn gas-to-liquids plant in the US, saying it was "not a viable option". Berkeley Group's shares surged after reporting a 19.2% rise in first-half profits of £169.2m in the first half, driven by strong demand in the housing sector. The company also said that full-year earnings could come in at the top end of analysts' expectations due to an earlier-than-expected completion of one its housing schemes in London. Others in the housing sector were also making gains, including Persimmon, Bovis Homes, Redrow and Taylor Wimpey, after Halifax reported a 1.1% rise in house prices in November.Telecoms group Vodafone rose after analysts at Berenberg upgraded their rating on the stock to 'buy' and lifted their target price from 233p to 265p. Meanwhile, London Stock Exchange gained after Bank of America Merrill Lynch raised its stance to 'buy'.Pizza delivery group Domino's fell sharply after announcing its Chief Executive Officer (CEO) Lance Batchelor is stepping down. Batchelor, who has been CEO since December 2011, is leaving to join an undisclosed private equity backed company in a non-competing sector.Sector peer AstraZeneca edged higher after saying that the European Commission has granted marketing authorisation to its nasally administered four-strain flu vaccine Fluenz Tetra. FTSE 100 - RisersPetrofac Ltd. (PFC) 1,194.00p +3.65%Royal Dutch Shell 'B' (RDSB) 2,157.00p +2.91%London Stock Exchange Group (LSE) 1,626.00p +2.78%Royal Dutch Shell 'A' (RDSA) 2,065.50p +2.58%Persimmon (PSN) 1,183.00p +2.51%Schroders (SDR) 2,444.00p +2.39%Fresnillo (FRES) 757.00p +2.23%Vodafone Group (VOD) 230.85p +2.12%Smiths Group (SMIN) 1,371.00p +2.08%Mondi (MNDI) 956.50p +1.86%FTSE 100 - FallersWhitbread (WTB) 3,492.00p -1.52%International Consolidated Airlines Group SA (CDI) (IAG) 357.60p -1.49%Reckitt Benckiser Group (RB.) 4,772.00p -1.30%Burberry Group (BRBY) 1,482.00p -1.27%RSA Insurance Group (RSA) 101.80p -1.26%Wolseley (WOS) 3,125.00p -0.95%Centrica (CNA) 329.40p -0.90%Marks & Spencer Group (MKS) 470.70p -0.76%Kingfisher (KGF) 363.60p -0.66%Next (NXT) 5,445.00p -0.46%FTSE 250 - RisersBerkeley Group Holdings (The) (BKG) 2,537.00p +11.17%Centamin (DI) (CEY) 45.96p +7.89%AL Noor Hospitals Group (ANH) 860.00p +6.57%Perform Group (PER) 422.00p +5.50%FirstGroup (FGP) 116.60p +4.95%Murray International Trust (MYI) 1,040.00p +4.63%Petra Diamonds Ltd.(DI) (PDL) 113.90p +4.50%Polymetal International (POLY) 498.20p +4.38%Atkins (WS) (ATK) 1,354.00p +4.31%Xaar (XAR) 1,065.00p +4.21%FTSE 250 - FallersDomino's Pizza Group (DOM) 480.00p -9.26%Spirent Communications (SPT) 102.60p -3.30%Debenhams (DEB) 87.70p -2.99%Chemring Group (CHG) 200.60p -2.15%Cairn Energy (CNE) 269.00p -1.75%Halfords Group (HFD) 481.00p -1.58%Carpetright (CPR) 522.00p -1.51%Partnership Assurance Group (PA.) 303.00p -1.46%Restaurant Group (RTN) 549.50p -1.35%Oxford Instruments (OXIG) 1,500.00p -1.32%BC
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