Dollar boosted by impressive job figures

Impressive US job figures were the main spur on equity market with US unemployment now at 5 per cent, the lowest since April 2008. The figures fuelled the dollar’s advance against the euro, driving European stocks higher given a likely boost to exports from the weaker euro.

DUBLIN

The Irish market added 1.05 per cent as the Iseq index gained 68.83 points to finish the week at 6,600.29 points.

CRH was in focus after an agreement in Washington on highway funding in the US between the House of Representatives and Senate. The deal, which provides funding certainty for six years, fanned a 4.06 per cent rise in CRH shares to close at €26.16.

CRH has an 18 per cent exposure to infrastructure, noted a trader in Dublin. “This is the longest programme since 2005 and it guarantees federal revenue for road-building . . .”

After positive results this week, Ryanair finished 0.17 per cent weaker at €14.78 yesterday. That is up €1.28 since Monday. "People are back flying," the trader said. "With a 94 per cent load factor, the planes are effectively full as you can get." On a good day for nationalised Allied Irish Banks, Bank of Ireland closed 2.18 per cent higher at 32.8 cent. However, the trader said the market was a little a disappointed with BoI's trading statement this week.

LONDON

Britain’s top share index retreated, weighed down by falling mining stocks as the dollar surged following better-than-expected US jobs data. “The US dollar has surged across all the other currencies and all the commodities are denominated in dollars, so they’re going to drop,” said Jasper Lawler, market analyst at CMC Markets.

The FTSE 100 was down 0.2 per cent at 6,353.83 points at the close, lagging European indices. Mining stocks lost the most value, with Glencore falling 4.7 per cent and Anglo American and Antofagasta down 1.7 per cent and 0.3 percent respectively. Another negative for the sector was the dam burst in Brazil on Thursday at an iron ore mine owned by Vale and BHP Billiton. BHP Billiton shares fell 5.7 per cent, trimming nearly five points off the FTSE 100.

EUROPE

European stocks advanced as the US jobs data fuelled the possibility of a Federal Reserve rate rise this year, weakening the euro and boosting euro zone exports. However, luxury goods stocks lost ground amid concern about weak Asian demand.

Germany's DAX was among the biggest gainers, with BMW and HeidelbergCement adding at least 2.1 per cent. Financiere Richemont slid 5.7 per cent, leading personal-and-household goods stocks to among the worst performances on the Stoxx Europe 600 Index, after the owner of Cartier and Montblanc forecast a challenging end to its year amid a slump in demand for watches in Asia. Swatch and LVMH fell at least 3 per cent.

The Stoxx 600 rose 0.3 per cent to 379.71 the close in London, paring earlier gains of as much as 0.9 per cent. The equity gauge reversed losses after US jobs labour data beat economists’ estimates in a Bloomberg survey of economists, while wage growth accelerated and the jobless rate fell to 5 percent.

WALL STREET

US indices were slightly lower in afternoon trading after the jobs report hardened prospects that the Fed would finally raise interest rates in December.

Eight of the 10 major S&P sectors were lower, with a 3.83 per cent decline the interest-rate sensitive utilities sector easily the worst. The financial sector was up 0.84 per cent, led by banks.

The dollar hit a 6-1/2 month high after the jobs data. Shortly before lunch-hour in New York, the Dow Jones industrial average was down 59.46 points, or 0.33 per cent, at 17,803.97.

The S&P 500 was down 12.42 points, or 0.59 per cent, at 2,087.51 and the Nasdaq composite index was down 4.40 points, or 0.09 per cent, at 5,123.34. – Additional reporting: Reuters/Bloomberg