FTSE 100 Slips as Weak US Jobs Data Stokes Growth Fears
The FTSE 100 surrendered early gains to finish lower on Friday after a disappointing US jobs report deepened concerns over the health of the world’s largest economy.
The blue-chip index closed down 0.1% at 9,208.21, having earlier reached an intraday high of 9,253.53. The FTSE 250 added 0.5% to 21,575.54, while the AIM All-Share also rose 0.5% to 765.63.
For the week, the FTSE 100 edged up 0.2%, the FTSE 250 slipped 0.1%, and the AIM All-Share gained 0.2%.
Across the Atlantic, Wall Street opened in the red. The Dow Jones Industrial Average fell 0.5%, the S&P 500 lost 0.4%, and the Nasdaq dipped 0.1%.
Analysts at Wells Fargo warned the US labour market is “in a precarious position,” forcing the Federal Reserve toward a rate cut “imminently.”
Thomas Feltmate, senior economist at TD Economics, said:
“There’s no escaping that the [US] labour market is softening, and quickly. Fed officials have become increasingly concerned about the downside risks, and today’s report will not assuage those fears.”
Wells Fargo added that the jobs engine which has underpinned US growth for the past four years is now “stalling”:
“With elevated risk of further downward revisions, the recent pace of hiring is dangerously close to crossing into negative territory, where job market weakness quickly becomes self-reinforcing.”
