Friday 5 April 2019 5:23 pm

Global stock markets rise after positive noises from US economy

Global stock markets rose today in reaction to better-than-expected March jobs data from the US.

The US economy added 196,000 jobs in March, rebounding from an unexpectedly poor performance of just 33,000 new jobs in February.

Read more: Employment in US surges after weak February but wage growth slows

The US benchmark S&P 500 stock index had risen 0.4 per cent by 5pm UK time, while the industrials-focused Dow Jones had risen 0.1 per cent.

Manufacturing employment showed little change from February, today's US jobs data showed, although the number of jobs in the sector fell by 6,000 in March.

In Britain the FTSE 100 rose 0.61 per cent over the course of the day, buoyed by a sterling fall of 0.6 per cent against the dollar. A cheaper pound makes British companies’ exports more competitive.

The FTSE 250 made smaller gains, climbing 0.2 per cent.

In Europe, the Euronext 100 index rose 0.3 per cent across the day, while the German benchmark Dax index rose by 0.2 per cent. The Eurostoxx 600 rose 0.1 per cent.

Meanwhile, the US dollar gained slightly against the euro, which bought $1.122.

Fiona Cincotta, senior market analyst at City Index, said: “The S&P rose for the seventh straight session on Friday, its longest winning rally since 2017. The dollar briefly spiked higher, but we are not seeing any significant gain for the buck.”

“The Goldilocks report should keep the Fed sat on their hands for a while longer over interest rate rises and the outlook for the US economy, which explains the reaction of the dollar.”

Chris Beauchamp, chief market analyst at IG, said: “Small gains are the order of the day aside from in the UK, where again sterling weakness has allowed the FTSE 100 to register some reasonable gains.”

Read more: Trump says economy would 'rocket' if Fed cut rates

“The non-farm payrolls report put last month’s tantrum behind it, beating expectations and seeing last month’s number revised higher,” he said. “Even any weakness in the data is merely another support for the Fed’s more cautious outlook.”