Market report: Rebound in US employment figures boosts global markets

Global markets soared as a blowout US jobs report boosted a rally that shows no signs of slowing down.

The rise in US employment defied all expectations, and suggested a recovery may be swifter than feared.

Stocks turned green across the board. Even Apple gained 2.5pc despite an expected delay to the new iPhone. Broadcom, a US semiconductor supplier, said it anticipated its revenues from Apple’s next phone would come later in the year, between October and December. Normally it is released in September.

On this side of the pond, the FTSE 100 popped 2.3pc as three quarters of London’s top companies grabbed gains. The blue-chip index is now nearly 30pc off the lows it hit during the recent market plunge, closing at levels last seen on March 6, when the UK’s Covid-19 outbreak was still in its early stages.

Gains were trimmed slightly by a rise in the pound, which continued its rally, up strongly against the dollar and the euro as a squeeze on short sellers and a global shift towards risk boosted the currency.

Analysts at Bank of America said June is shaping up to be a “pivotal” month for sterling, with the June 19 EU Summit and end-of-month deadline for the UK and EU to extend talks looming on the horizon. They said the pound’s moves are “likely to become more idiosyncratic”.

Writing ahead of the US job reading, Barclays said global stock markets seem to be comfortably settled into a new bull period.

“Some pullback seems thus possible after the impressive run of the last few weeks, yet we believe the equity risk/reward remains favourable,” said its analysts, led by its European equities head Emmanuel Cau. “Successful exits from lockdowns so far are allowing more and more economies to reopen, boosting expectations of a V-shaped recovery, as mobility data, high frequency indicators and economic surprises are rebounding.”

It was a typically light Friday for corporate reporting, but there were a handful of notable movers across London markets.

On the FTSE 100, British Airways owner IAG continued to soar, up 39p to 323p, leaving it more than 43pc higher across the week as the index’s best performer.

Cruise operator Carnival – which is set for relegation from the blue-chips after Covid-19 devastated its share price – also extended a rally, rising 237p to £14.32.

Elsewhere, emerging markets-focused lender Standard Chartered and fashion house Burberry both shrugged off negative analyst commentary to push higher.

On the FTSE 250, which rose in line with the blue-chip index, gains were even more widespread – 213 of London’s mid-caps rose.

Among fallers was waste management group Biffa, which dropped 18p to 245p after scrapping its final dividend. The group said it was well-positioned for the impact of Covid-19, but said the pandemic had brought “unprecedented challenges” that had prompted it to furlough some employees and focus on conserving cash.

Its profits rose 6.6pc in the financial year ended March 27, while its pre-tax profit more than doubled to £56.4m.