FTSE 100 gains further ground ahead of US jobs report

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The FTSE 100 has risen in early trading, following the central bank forward guidance issued yesterday, as investors await keenly watched employment numbers from the US.

As of 1030 BST, the blue-chip index was up 0.29 per cent to 6,440.16 with Travis Perkins, Aberdeen Asset Management, Associated British Foods, British Land and Reckitt Benckiser leading the early gainers in the session.

Yesterday, the FTSE advanced 3.08 per cent after the Bank of England and the European Central Bank took steps to reassure that they do not plan to raise interest rates from their historic lows any time soon.

Asian markets also gained overnight, with the Nikkei 225 adding 2.08 per cent to end its session at 14,309.97.

Today’s session will be dominated by the US non-farm employment report, which will offer fresh details on the health of the recovery in the world’s largest economy but could foreshadow the beginning of the end for the Federal Reserve’s bond-buying programme.

The US economy created 175,000 jobs in May and a Bloomberg survey of economists found that it is expected to have added another 165,000 in June. Capital Economics, on the other hand, expects just 150,000 jobs to have been created.

Perpetual head of investment market research Matthew Sherwood told the news provider: “Continued central bank stimulus across European economies is supporting sentiment and we have seen that flow through to Asian markets.

“Strong payrolls mean a strong US economy, which is an important foundation particularly for emerging markets given their trade exposure. But that will bring forward expectations about the Fed’s tapering. The market could be volatile.”