British stocks dropped amid US job report
British stocks sagged on Friday. The pound dipped against the greenback as investors digested the mixed US monthly jobs report.
The FTSE 100 lost 0.2% after the release of the long-awaited US jobs data, though the benchmark headed for another gain. The index has been showing a 2.8% decrease since last Friday, and that would ruin two weeks of advances. It’s going to be the worst week in the month.
After the jobs report there was a mixed response across the markets, but the greenback became stronger. Equity markets aren’t fully certain how to take it with choppy moves, as market analyst of Hantec Markets, Richard Perry states.
In the afternoon trade, American Labor Department’s report for January unveiled nonfarm payrolls surged by less-than-anticipated 151,000 jobs. Meanwhile, the unemployment rate decreased to an eight-year low of 4.9%, while average hourly wages soared 0.5% to $25.39 an hour.
The analyst added that the headline number matters, but the market is definitely waiting for hourly earnings, which have a great impact on inflation. The market firstly retreated hoping for a weak report, but the actual report appeared to be a bit better, thus adding some strength to the greenback.