London’s FTSE 100 closed at its highest level in more than two months on Thursday as softer-than-expected US jobs data eased concerns that the Federal Reserve may raise interest rates.
The blue-chip index rose 1.7% to 10,652.9 points, its strongest close since late April.
The rally was broad-based, with investors taking the weaker US employment report as a sign that pressure for further Federal Reserve tightening may be easing.
The FTSE 250 also gained 0.4%, reaching a two-week high.
The US economy added 57,000 jobs in June, well below expectations, while the unemployment rate fell to 4.2%. The softer payrolls figure helped calm fears that the Fed would need to raise rates again in the near term.
Healthcare stocks were among the strongest performers in London, while consumer-focused names and defence stocks also gained.
AstraZeneca rose after announcing a deal worth up to $1.77 billion with China’s CSPC Pharmaceutical Group to develop treatments for kidney conditions.
Defence stocks also advanced, with BAE Systems, Rolls-Royce, QinetiQ, Babcock and Chemring all moving higher.
The move in London followed a broader global rally, with European and US equities also supported by the easing of rate-hike expectations.
