LONDON MARKET CLOSE: Stocks bolstered by solid US jobs report

Fri, 05th Nov 2021 17:01

(Alliance News) - Stocks in London ended higher on Friday after the pace of US job creation roared back to life in October.

US nonfarm payrolls came in ahead of expectations in October, figures from the US Bureau of Labor Statistics showed.

The US economy added 531,000 jobs in October, up from a revised 312,000 additions in September, initially reported at 194,000. Thus far this year, monthly job growth has averaged 582,000.

October's figure massively overshot the consensus estimate, cited by FXStreet, of 425,000.

The FTSE 100 index closed up 24.05 points, or 0.3%, at 7,303.96, ending the week up 0.9%.

The FTSE 250 ended up 125.68 points, or 0.5%, at 23,596.79, finishing 2.1% higher for the week.

The AIM All-Share closed up 1.71 point, or 0.1%, at 1,237.21, ending the week 1.1% higher.

The Cboe UK 100 ended up 0.2% at 723.90, the Cboe UK 250 closed up 0.5% at 21,065.00 and the Cboe Small Companies finished up 0.2% at 15,586.10.

In Paris the CAC 40 stock index ended up 0.8%, while the DAX 40 in Frankfurt ended up 0.2%.

Stocks in New York were higher at the London equities close on the upbeat US jobs numbers and after a Pfizer announcement about a promising Covid-19 treatment.

The DJIA, the S&P 500 index and the Nasdaq Composite were all up 0.6%.

"A long-awaited solid NFP reading has provided a boost for stock markets, pushing US indices to new record highs across the board. Coupled with the 'steady as she goes' mandate from the Fed earlier in the week, enthusiasm for stocks has returned once again, with European markets also gaining in the final session of the week," said IG Group's Chris Beauchamp.

Pfizer said a clinical trial of its pill to treat Covid-19 showed an 89% reduction in risk of hospitalization or death among adult patients at high risk of progressing to severe illness.

Chief Executive Albert Bourla described the announcement as "a real game-changer in the global efforts to halt the devastation of this pandemic."

The stock was up 8.0% in New York.

In the FTSE 100, International Consolidated Airlines ended the best performer, up 6.1%. The airline operator posted a narrowed loss in the third quarter of 2021, amid improved operating conditions.

The US is set to lift restrictions for fully-vaccinated international travellers from Monday.

The parent company of British Airways, Iberia and Aer Lingus said passenger capacity in the three months to September 30 was 43% of 2019, up from 22% in the three moths to June 30. Current passenger capacity visibility for quarter to December 31 is for around 60% of 2019 capacity.

IAG said cargo carried in the third quarter was up 37% on 2020, reaching 73% of 2019 levels, despite a reduction in cargo-only flights as passenger capacity increased, with 657 cargo-only flights operated in the quarter compared with 1,371 in the second quarter.

Reported operating loss for the third quarter totalled EUR452 million, narrowed from EUR1.92 billion a year ago. For the first nine months of 2021, the company reported an operating loss of EUR2.49 billion, narrowed from EUR5.98 billion a year ago.

Travel-related stocks Rolls-Royce and Melrose Industries closed up 5.8% and 4.3% in a positive read-across.

Standard Chartered closed up 2.5% after UBS upgraded the emerging markets-focused bank to Buy from Neutral.

At the other end of the large-caps, Darktrace ended a miserable week as the worst performer, down 3.6%. Earlier this week, a fund managed by Vitruvian Partners sold 11.0 million shares in the cybersecurity firm after a lock-up period expired. The stock lost 26% this week alone. Darktrace shares have been in freefall since being hit by a bearish research note from peel Hunt at the end of October.

In the FTSE 250, Airtel Africa ended the best performer, up 11%. The telecommunications services provider's subsidiary Smartcash Payment Service Bank was granted approval to operate a payment service bank business in Nigeria. Final approval is subject to the group satisfying certain standard conditions within six months.

At the other end of the midcaps, 4imprint lost 3.9% after the promotional merchandise marketer backed its annual guidance as the firm reported further "encouraging" progress against a backdrop of continuing uncertain and volatile market conditions.

4imprint noted that pandemic-related global and local supply chain issues continued to cause inventory availability challenges, increased production times and product cost inflation in the second half of 2021. However the group's full year financial performance is still forecast to be in line with expectations.

The pound was quoted at USD1.3482 at the London equities close, down from USD1.3505 at the close Thursday.

The euro stood at USD1.1550 at the European equities close, firm from USD1.1547 late Thursday. Against the yen, the dollar was trading at JPY113.47, down from JPY113.72.

Brent oil was quoted at USD82.82 a barrel at the equities close, up from USD82.05 at the close Thursday.

Gold stood at USD1,810.85 an ounce at the London equities close, higher against USD1,793.00 late Thursday.

The economic events calendar on Monday has eurozone consumer confidence at 0930 GMT.

The UK corporate calendar on Monday has third-quarter results from funeral services provider Dignity and interim results from eggless cake maker Cake Box.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com