It was a gloomy Friday for London’s stock market, with the FTSE 100 tumbling 1.3% to close at 8,174.71. The mid-cap FTSE 250 fared even worse, plunging 3% to 20,826.35.
The day’s drama centred on the latest US jobs report, which fell well short of expectations. Only 114,000 new jobs were added in July, far below the predicted 175,000. This lacklustre performance, coupled with a jump in the unemployment rate to 4.3%, set alarm bells ringing about the health of the world’s largest economy.
These concerns spread like wildfire across global markets. In Europe, Paris and Frankfurt saw significant drops, while Wall Street was awash in red, with all major indices down over 2% by the London close.
Back in Blighty, it was a sea of red for most FTSE 100 companies. Melrose, still smarting from Thursday’s poor showing, fell another 6.3%. Banks and housebuilders also took a beating, reflecting wider economic worries.
However, it wasn’t all doom and gloom. British Airways owner IAG bucked the trend, soaring 4.7% after reinstating its dividend and posting strong quarterly results. GSK also managed to climb 2.4% on positive news about its cancer treatment.
In the smaller companies, cybersecurity firm NCC saw a boost after selling off a Dutch division, while Trinity Exploration & Production jumped on news of a fresh takeover bid.
Looking ahead, investors will be keenly watching for any signs of economic recovery, particularly in the US. With the Federal Reserve hinting at a potential rate cut in September, all eyes will be on upcoming economic indicators for clues about the future direction of monetary policy.
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