Wall Street ended the week in a bullish note with news that unemployment in the US had fallen to the lowest level since 2008.
Jobs added amounted to 236,000 last month. The Dow Jones gained 0.21%, or 31 points, to 14, 352 while the S&P 500 added 0.05% to reach 1,545.
The top riser on the S&P was H&R Block Inc (HRB), which gained 8.8% after it said changes in tax policy led to a 5.8% drop in tax returns the company prepared through to February 28, while Tenet Healthcare Corp gained 3.1%.
Meanwhile, in the UK, an upgrade to Japan's GDP figures and better-than-expected Chinese export numbers kept Britain's blue chip index to finish the week on a high.
Japan said its GDP grew 0.2% between October and December, having initially said it shrank 0.4%.
The revision, which was boosted by corporate spending and household consumption, has lifted hopes of an economic recovery led by new premier Shinzo Abe.
Meanwhile, a surge in Chinese exports suggests the global economy could be picking up.
Michael Hewson from CMC Markets reckons the Footsie, which lifted 16 points or 0.25% to 6,455 by lunch, is taking cue from across the pond.
The Dow Jones broke yet more records in the States on Thursday when it reached new highs of 14,329, rising 0.2%.
Hewson said: “It appears that once again markets are taking their cues and exuberance from US economic data, embracing the good data and interpreting the disappointing data as further reasons for the Fed to maintain its QE forever monetary policy and in the process presenting investors with what seems like a no lose scenario, always a situation that usually ends up as being too good to be true.”
He believes the market will react in much the same way to today’s February jobs report. Analysts are revising up their forecasts after this week’s better-than-expected employment report.
162,000 new jobs are likely to have been added, while the unemployment rate is expected to remain at 7.9%.
The top riser steelmaker Evraz (LON:EVR), up 3.2%, with BAE Systems (LON:BA.) climbing 2.1% and HSBC (LON:HSBA) not far behind, up 2%.
Britain’s biggest insurer Aviva (LON:AV.) picked up the pieces of the fallout from its dividend slashing on Friday. The shares recovered 2% of yesterday’s losses, which came as the company posted a £3bn loss on big write-downs on its messy US exit.
The biggest faller on the main index was temporary power generator Aggreko (LON:AGK) after a bout of profit-taking on the back of yesterday’s big gains saw it lose 3.4%.
Miners Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) also dropped to the foot of the table, down 2.2% and 1.9% each, while copper producer Kazakhmys (LON:KAZ) drifted 2% lower when Nomura cut its near-term earnings by around 50%, as well as its target price, which now stands at 475p.
On the second tier, Halma (LON:HLMA), which makes products that detect hazards, rose 3.7% when Barclays Capital added the stock to its ‘overweight’ list.
Engineering company Turbo Power Systems (LON:TPS) continued its winning run on AIM. Its value more than doubled today after doing the same on Thursday when it unveiled new business worth US$3.2mln. The tightly held micro-cap, worth just over £3.6mln yesterday, received a purchase order from Canadian train maker Bombardier for spare parts.
Sportech (LON:SPO) hit the back of the net when the independent tax tribunal agreed with the football pools operator that its Spot the Ball game is a game of chance and therefore not subject to VAT. Sportech is hoping it will be repaid more than £80mln after splashing out on VAT and interest between 1979 and 1996.
Shares were punted 20% higher on the news.
Investors logged on to tech entrepreneur Vin Murria’s Advanced Computer Software (LON:ASW) today. It has splashed £110mln in cash on privately-owned Computer Software Holdings – the company Murria sold in 2007.
CSH is a leading provider of accounting and back office software to the UK professional services market and Customer Relationship Management software for the not-for-profit market. The acquired business will be incorporated into Advanced Computer’s Business Solutions and 365 Managed Services divisions.
Bridge Energy (LON:BRDG) shot up 9% when it announced that Asha will be incorporated into the development of the neighbouring Ivar Aasen field.
Eland Oil & Gas (LON:ELA) rose by a couple of per cent after signing an option agreement to snap up 40% in the OPL 452 licence in the Niger Delta.
Latin American gold miner Orosur Mining (LON:OMI) meanwhile shone 9% higher after waving goodbye to its chief executive David Fowler.