UK stocks high on US payrolls data

June 7, 2013 1:32 pm

UK top benchmark indexes rose significantly over positive US data. The change in non-farm payrolls topped estimates with 12 000 more jobs open than predicted. The FTSE 100 index is up 0.37% today making a big jump right after the US data was posted. Bellway Inc, the residential property developer surged 3% after the company stated reservations in the past four months rose 31%. Elan Corp. a neuroscience company jumped to 11 month high after Royal Pharma increased its acquisition offer to $6.7 billion.

Although positive non-farm payrolls data, the US unemployment rate recorded a slight climb to 7.6% posing questions of unresolved issues at the labor market. The two indicators are in contradiction with one another. However, the predominant investor sentiment shows positivism in recovery of the economy.

The US stock futures corrected its numbers as now they are showing positive hints for the market opening.

Mixed US economy data led to more debates of what Fed next step is going to be. It is not clear if the government would prefer to taper the stimulus program before stable roll of data is issued showing a strong pattern for future growth. Given the expectations the reaction to payrolls data was relatively calm.

“Strap in…lock and load…it will be a wild on today,” Andrew Brenner, head of international fixed income at National Alliance Capital Markets in New York, told his clients before the report cited by The Wall Street Journal. However, stock market remained slightly changed with mixed volatility in both ways.

 

 

Where to Trade

BinaryTribune is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action, Binary Options and Social Trading.

Related