London close: FTSE ends on a high after US employment figures deliver suprise

It was a positive finish to the week for the FTSE, as stocks rebounded from four straight days of declines as US employment data beats expectations.

The FTSE 100 closed 81.52 points higher at 6,527.91, a drop of 123.25 on the week.

US non-farm payrolls rose to beat forecasts and the jobless rate fell unexpectedly, potentially adding to speculation of an interest rate hike.

Employers added 248,000 jobs in September, more than the 215,000 predicted by analysts, compared to 180,000 a month earlier. The unemployment rate fell to 5.9% from 6.1%, surprising the market which had projected it to remain unchanged.

The estimates for the previous two month's gains in non-farm payrolls were revised higher by a combined 65,000.

Back in the UK, the purchasing managers' index for the services industry dropped to 58.7 in September from 60.5, more than the 59 expected by analysts. However, it remained markedly above its lifetime average of 55.1 and substantially above the 50.0 level that denotes flat activity.

That came as data showed the Eurozone's service sector had unexpectedly cooled slightly in September.

The headline gauge slipped to a reading of 52.4 from 52.8 in the month before. Economists had been expecting a flat reading.

Easyjet soars after impressing with H2 update

Easyjet shares took off after the budget airline increased its outlook for the half year ended 30 September from between £545m and £570m to between £575m and £580m, thanks to a strong finish to the summer season, which saw increased revenue per seat. The group has also benefited from the Air France pilots' strike in September, which is expected to increase Easyjet's revenue by around £5m.

Cruise operator Carnival cheered with its third quarter results on Friday, after posting a rise in both quarterly and three-quarterly revenue. The FTSE 100 group said third quarter turnover climbed from $4.73bn to $4.95m year-on-year and from $11.8bn to $12.2m for the nine-month period.

United Utilities investors appeared to be satisfied with the company's revised pricing plan for the 2015-2020 period. The proposal would result in average household bills falling by 4.1% in real terms over the five-year period, compared with a 2.3% reduction put forward in its June plan.

Mining stocks tracked metal prices lower, with Fresnillo, Antofagasta, Rio Tinto, Anglo American, Randgold Resources and BHP Billiton all dropped into the red.

Tesco dropped amid further market chatter regarding the possibility of a rights issue. According to the FT Alphaville, a £3bn rights issue is now an option being considered. Sector peer Morrison Supermarkets also declined, but Sainsbury was seen at the other end of the index as it made a slight recovery following recent heavy losses.

On the second tier, engineering and project management company Amec pleased with its first half results, in which it maintained its outlook and reported progress with its purchase of Foster Wheeler.



Market Movers
techMARK 2,789.65 +1.69%
FTSE 100 6,527.91 +1.26%
FTSE 250 15,230.08 +1.50%

FTSE 100 - Risers
easyJet (EZJ) 1,459.00p +6.42%
International Consolidated Airlines Group SA (CDI) (IAG) 365.20p +4.97%
Carnival (CCL) 2,444.00p +4.31%
Shire Plc (SHP) 5,455.00p +4.30%
ITV (ITV) 206.20p +4.25%
Ashtead Group (AHT) 1,018.00p +4.20%
Persimmon (PSN) 1,341.00p +3.55%
TUI Travel (TT.) 393.00p +3.39%
United Utilities Group (UU.) 810.00p +3.25%
Next (NXT) 6,650.00p +3.02%

FTSE 100 - Fallers
Fresnillo (FRES) 720.00p -3.94%
Tesco (TSCO) 172.15p -3.40%
Antofagasta (ANTO) 680.50p -2.58%
Tullow Oil (TLW) 600.00p -1.56%
Randgold Resources Ltd. (RRS) 4,091.00p -1.54%
Rio Tinto (RIO) 2,949.50p -1.29%
RSA Insurance Group (RSA) 469.90p -1.20%
BHP Billiton (BLT) 1,650.50p -0.99%
Anglo American (AAL) 1,314.50p -0.94%
Diageo (DGE) 1,744.00p -0.85%

FTSE 250 - Risers
Renishaw (RSW) 1,682.00p +5.79%
Mitchells & Butlers (MAB) 368.40p +5.56%
Pace (PIC) 307.70p +5.34%
Wetherspoon (J.D.) (JDW) 820.00p +5.13%
Crest Nicholson Holdings (CRST) 320.10p +4.99%
Amec (AMEC) 1,092.00p +4.50%
Dunelm Group (DNLM) 829.00p +4.41%
Genus (GNS) 1,175.00p +4.17%
Foxtons Group (FOXT) 226.90p +4.08%
Ted Baker (TED) 1,945.00p +3.84%

FTSE 250 - Fallers
African Barrick Gold (ABG) 206.30p -6.61%
Lonmin (LMI) 167.10p -4.89%
Evraz (EVR) 116.40p -4.20%
Polymetal International (POLY) 480.60p -3.30%
Kennedy Wilson Europe Real Estate (KWE) 1,028.00p -2.93%
Domino's Pizza Group (DOM) 563.50p -2.00%
Zoopla Property Group (WI) (ZPLA) 214.00p -1.11%
Spire Healthcare Group (SPI) 285.00p -1.04%
Kazakhmys (KAZ) 242.00p -0.86%
Go-Ahead Group (GOG) 2,523.00p -0.63%