THE predictions of turmoil spreading from the US to European markets in the wake of the latest monthly non farm payroll report were confounded yesterday.
Publication of the report during the early afternoon saw a bout of turbulence in US Treasury bonds, which tumbled a full point before picking up equally rapidly.
The FTSE 100 index, down over 22 points when the non farm payroll report was announced, quickly dived to post a 30 point fall, before staging an equally impressive rally.
A subsequent strong start to the day by Wall Street, which was quickly into its stride and where the Dow Jones Industrial Average was up over 30 points shortly after the opening, was eagerly followed by dealers in London.
Gathering itself from the day's low point, down 30.4 at 3,856.8; Footsie thereafter moved steadily ahead and finished the day 5.8 higher on balance at 3,893.0.
Traders said Footsie would have moved back through 3,900 if trading had carried on for a further 30 minutes.
Trading and performance in the second line issues was much more subdued. At its worst, shortly after the start of trading, the FTSE Mid-250 index dropped back through the 4,400 level and was down 10.9 at 4,395.8. It later rallied to close down 3.5 at 4,403.2.
Over a week which has seen British shares see saw, as the market responded to bursts of takeover speculation and fears of a big rise in US interest rates, the FTSE 100 index has emerged with a 25.4 point rise while the Mid 250 has fallen 13.
