he FTSE 100 closed in the green on Friday after a mixed session that saw new US jobs data give global stocks an afternoon boost.
The world’s biggest economy added 187,000 jobs in July, lower than economists had been expecting. It also revised down total figures from the previous months.
It indicates that policymakers’ efforts to cool the jobs market could be taking effect after several months of strong data.
However, pay growth was higher than expected which could be cause for concern for the Federal Reserve in its efforts to drive down inflation.
The internationally-focused FTSE 100 gained 35.21 points, or 0.47%, to 7,564.37.
It comes after a downgrade to the US’s debt rating rocked global markets earlier in the week.
A positive tone prevails across markets in the wake of payrolls this afternoon, raising hopes that the mid-week wobble around the US downgrade can be contained
European stocks were also faring much better than earlier in the week on Friday afternoon. Germany’s Dax closed 0.37% higher, and France’s Cac 40 went up 0.75%.
The positive sentiment was felt by investors in America, with the S&P 500 and Dow Jones up about 0.6% by the time European stocks closed.
Chris Beauchamp, chief market analyst at IG, said: “A positive tone prevails across markets in the wake of payrolls this afternoon, raising hopes that the mid-week wobble around the US downgrade can be contained.
“Admittedly, with wage growth stronger than expected investors haven’t exactly charged in at full tilt, but dollar weakness suggests that the higher wage figures are not proving too much of a worry.”
The pound enjoyed a modest rebound against the US dollar following the jobs data, and was up 0.5% to 1.2779. Sterling was down 0.25% against the euro to 1.1577.
The price of Brent crude oil jumped 1.14% to 86.11 US dollars per barrel.
In company news, shares in Capita slumped after the outsourcing firm posted a half-year loss and revealed it could face costs of up to £25 million in the aftermath of a cyber attack.
The company said the recent breach could take a big bite out of its finances as it looks to recover the costs and invest in its cyber security. It said pre-tax losses were also driven by business costs and a goodwill impairment.
Investors were clearly unimpressed by the update, despite the firm citing continued progress on its lengthy turnaround plans. Its share price closed 18.3% lower.
Advertising giant WPP also saw its shares slip on Friday after warning that weaker spending by US tech firms will dampen its growth in 2023.
The firm cut its revenue growth forecasts for the year, with its second quarter affected by lower spending from technology clients in America.
Nevertheless, the firm still reported an uplift in revenues to £7.2 billion over the first half of the year. Its share price fell 3.5%.
The biggest risers on the FTSE 100 were Rolls-Royce Holdings, up 14.3p to 206.5p, Mondi, up 68p to 1,313p, St James’s Place, up 37.6p to 907.2p, Flutter Entertainment, up 520p to 15,160p, and Smurfit Kappa, up 106p to 3,242p.
The biggest fallers on the FTSE 100 were WPP, down 29.2p to 818p, Spirax-Sarco Engineering, down 125p to 10,925p, Compass Group, down 21p to 1,996p, Reckitt Benckiser Group, down 58p to 5,622p, and Haleon, down 3.2p to 321.75p.