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FTSE climbs despite lower than expected NFP

The FTSE 100 is up 55 points, and looks to close around the 6750 level, as a shockingly low non-farm payrolls figure does not prove enough to offset the decline in the unemployment rate.

US data confuses UK markets

Both the non-farms and unemployment figures seem too far off estimates to be an accurate gauge of the US labour market, but traders don’t know which one to write off. Investors are beginning to wonder whether the Federal Reserve began reducing its stimulus package a little on the early side. 

A rebound in the metals markets has ensured that mineral stocks are in demand, which has kept the FTSE 100 a cut above its European counterparts. 

NFP hits Dow

In the US the Dow Jones is off 50 points at 16,395 as the non-farm payrolls figure proved to be a swing and a miss. The participation rate is a major factor when measuring the rate of unemployment – such a low participation rate has taken the shine off the unexpected drop in unemployment.

Now that the dust is settling investors are viewing the jobs numbers for what they are; weak. Quantitative easing may be proving to be less effective, but we are a long way from the next round of tapering.

Metals see boost

The metals market welcomed the worse-than-expected jobs data, as the US dollar is likely to be soft on the back of the non-farms figure.

Dollar soft

The US dollar lost ground along with most major currencies, as the disappointing jobs data will ensure the printing press will be kept on.

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