FTSE close: Vodafone up; Serco, Fresnillo down

By This Is Money
Updated: 12:21 EDT, 3 June 2011

17.10 (close)

Friday feeling: Traders will watch US jobs data.

The FTSE 100 Index staged a last minute rally today after a batch of positive trade figures in the US overshadowed troubling jobs data published earlier in the session.

The US Labor Department said only around 54,000 US jobs were added in the US in May - about a third of what had been forecast - hitting markets on both sides of the Atlantic earlier in the day.

However, the FTSE 100 Index was boosted, closing 7.1 points up at 5855, after a report from the Institute for Supply Management (ISM) said the US economy's service sector, which employs 90% of America's work force, grew in May for an 18th straight month.

The mood was also improved as talks between Greece and a delegation of European inspectors on the country's reform program were reported to have concluded positively.

Finance chiefs were in the country to review Greece's implementation of economic reforms in return for 110bn euros (£97bn) in rescue loans from the European Union and IMF.

The jobs figures in the US hit the dollar, which fell against the pound to 1.63. Sterling was down against the euro at 1.12.

However, the uncertain economic prospects held back further progress, reflected in a largely disappointing session for commodity-based stocks, with BHP Billiton among the fallers with a drop of 21.5p to 2305.5p.

Commodities trader Glencore International led the FTSE 100 fallers board for a while and was down 5.9p to 505p as sentiment towards the stock remained weak following last month's high-profile flotation at 530p a share.

Key stocks propping up the blue-chip index included Vodafone after a rise of 3.1p to 163.9p, while property firms continued their strong run.

With recent full-year results highlighting increased confidence among the major players, British Land lifted 9.5p to 591p, Hammerson added 5.3p to 479p and Land Securities, which has shopping centre interests including Cabot Circus in Bristol and Birmingham's Bullring, cheered 2p to 833p.

Vehicle catalysts and chemicals firm Johnson Matthey also rose 39p to 2052p, recouping some of the losses seen yesterday in the wake of results showing a 14% rise in profits to £261m.

Transport stocks set the pace in the FTSE 250 Index after JP Morgan Cazenove upgraded the sector on the back of hopes that better employment prospects in the UK will drive volumes and revenues in both bus and rail.

Southern and Southeastern operator Go-Ahead rose 29p to 1490p and Stagecoach lifted 9p to 249.1p, while FirstGroup was 1.4p higher at 337.8p.

At a smaller scale, shares in model railways firm Hornby steamed ahead 8% after it outlined its strong prospects for the year ahead, particularly in relation to London Olympics merchandise.

It also claimed to have tackled the supply chain issues which caused annual profits to slump by a fifth to £4.1m. Shares were 14p higher at 133p.

Among the fallers, trendy fashion chain SuperGroup continued its recent descent with a fall of 70p to 1037p, making a decline of more than 40% since the middle of February.

The biggest Footsie risers were Autonomy up 70p at 1825p, Johnson Matthey ahead 39p at 2052p, Vodafone up 3.1p at 163.9p and British Land ahead 9.5p at 591p.

The biggest Footsie fallers were Serco Group down 17p at 580.5p, Fresnillo off 24p at 1404p, Essar Energy down 6.4p at 432.5p and Intercontinental Hotels off 18p at 1229p.

16.15: The FTSE 100 has edged back up as the end of the session and the trading week approach.

It's ahead 7 points at 5,854.9.

The Dow is down 81.7 points at 12,166.8.

15.20:

US services data has come in ahead of forecasts and blunted the edge of the payrolls disappointment.

The ISM non-manufacturing index rose to 54.6 in May from 52.8 in April, revealing an acceleration in growth (a reading above 50 indicates expansion).

The Dow is 101.2 points lower at 12,147.4.

Back in London, the FTSE 100 is down 8.7 points at 5,839.2.

15.05:

The Dow Jones is trading in the red - it's down 112.4 points at 12,136.1 after worse than expected payrolls data.

The FTSE 100 is down 20.1 points at 5,827.9.

Joshua Raymond, market strategist at spreadbetter City Index, said: 'The US jobs reading is a bit of a shock to the system and heightens fears of a slowdown in the US economic recovery.

'In truth we require greater evidence of the labour market stagnating there to convince us of this, but with the week being a really bad week in terms of US economic data, one cannot blame traders for offloading stocks and downsizing risk ahead as we delve deeper into summer.'

13.30:

Those crucial US non-farm payroll figures are in, and they are below expectations.

Total non-farm payrolls increased by 54,000 in May, the Labor Department confirmed. That is well below the 125,000 predicted in a poll of Wall Street economists.

It takes the unemployment rate in the world's largest economy to 9.1% in May from 9.0% in the previous month. Economists had forecast the rate to fall to 8.9%.

That is likely to hit shares in the UK and globally. Check back for the full impact as the afternoon goes on. Right now, the FTSE 100 is 0.7 points up at 5848.65.

13.00:

Today's news of a slowdown in services sector growth, right on the heels of disappointing news about manufacturing earlier this week, has hardened expectations an interest rate rise will be delayed.

The Markit/CIPS survey of the services industry showed activity slowed to 53.8 in May from 54.3 the previous month.

The run of bank holidays in April is likely to have caused some lost momentum, but economists said the findings on services added to the recent largely disappointing news on the UK economy.

We have more here.

The FTSE 100 is up just 0.4 points at 5,848.4.

12.30:

Trading is thin today ahead of US jobs data. The FTSE 100 is 0.08 points up at 5848.00.

The latest figures from the Labor Department are expected to show slowing US jobs growth, adding to concerns about the health of the economy after weaker than forecast data on manufacturing and consumer confidence.

Key stocks propping up the blue-chip index include Vodafone after a rise of 2.2p to 163p, while property firms continued their recent strong run.

With recent full-year results highlighting increased confidence among the major players, British Land lifted 8p to 589.5p, Hammerson added 5.35p to 479.05p and Land Securities, which has shopping centre interests including Cabot Circus in Bristol and Birmingham's Bullring, cheered 6.75p to 837.5p.

11.40:

London shares are trading flat - down just 2.1 points at 5,845.8 - ahead of US payrolls data due at 13.30 UK time.

'Blue-chips in London are stuck in a tight range – with nothing so far registering a change of even a couple of percent either way,' said David Jones, chief market strategist at spreadbetter IG Index.

'Some calm has returned to the FTSE 100 over the past day or so, and many traders still consider the lows of 5800 from late May the key level that should underpin any further weakness in the market.

'It does feel as if the pessimism may have been overdone in recent days and if the payrolls data is broadly in line with revised expectations of around 165,000 we could see a slight rally into the weekend.'

Brent crude is trading at just over $113 a barrel. Gold was fixed this morning at $1,531 an ounce compared with $1,539.50 at the previous close.

11:10:

The Footsie has swung about a bit this morning and is currently 3.82 points up at 5851.74.

In corporate news today, profits at model railway maker Hornby fell by 21% to £4.1m in the year to March 31,with sales hit by the severe Christmas weather which slowed crucial trade.

Hornby insisted it's ready to meet an expected boom in demand for London Olympics merchandise after resolving the supply chain problems which caused its annual profits to slump by a fifth.

Here's more.

10:00:

The FTSE 100 has made modest gains ahead of key US jobs figures, but Glencore and other commodity-linked stocks are on the slide.

The blue chip index is up 11.8 points at 5,859.67 as investors brace for possible further bad news from the US.

Grim figures from the world's biggest economy have fuelled market volatility in recent sessions, and 'non-farm payrolls' employment figures and ISM non-manufacturing data for May will be keenly watched later.

Among commodity-based stocks, Glencore International is down 4.5p at 506.40p, a decline that takes the top flight newcomer to the Footsie further away from its flotation price of 530p.

Rio Tinto is 32p lower at 4,110.5p, while Fresnillo is off 13p at 1,415p. Xstrata, in which Glencore holds a 34% stake, has edged 0.5p lower to 1,376p.

Key stocks propping up the blue-chip index include Vodafone with a rise of 2.2p to 163p.

Johnson Matthey has climbed 25p to 2038p after full-year results yesterday showed a 14% rise in profits to £261m.

Transport stocks set the pace in the FTSE 250 Index after JP Morgan Cazenove upgraded the sector on the back of hopes that better unemployment prospects will drive volumes and revenues in both bus and rail.

Go-Ahead rose 57p to 1518p and Stagecoach lifted 8.4p to 248.5p. FirstGroup in the FTSE 100 was 1.35p higher at 337.8p.