10th Oct

FTSE extends rally on more positive US jobs figures

The FTSE 100 closed 53 points, or 0.9% higher at 5,829 after the latest batch of US job figures indicated a sustained recovery in the country’s employment levels.

Labour Department data showed the number of Americans filing new claims for unemployment benefit dropped by 30,000 to a seasonally adjusted 339,000 last week. This is the lowest claimant count in over four and a half years.

Meanwhile, a widening in the US trade deficit to $44.2 billion in August was in line with analyst expectations and reflected the impact of the recession in Europe as US goods exports fell for the fifth month in a row.

The US the S&P 500 rose 7.5 points or 0.5% to 1,440 and the Dow Jones industrial average gained 31 points or 0.24% to 13,376 in the first few hours of trading.

After a positive start the FTSE 100 closed 53 points or 0.9% higher at 5,829, making up for some of the losses in the previous three sessions.

In Europe the Euronext 100 index added seven points or 1% to 653p.

On currency markets the pound and euro strengthened against the dollar to trade at $1.6027 and $1.2929 respectively.

Growing tensions between Syria and Turkey helped push the price of Brent crude oil to nearly $117 a barrel.

Gold advanced 0.3% to $1,767 an ounce.

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