FTSE races 1.8% higher as US economy ‘fires on all cylinders’
(Update) The FTSE 100 swept past the testing 7,000 mark as a good initial reading on US employment from payroll processor ADP showed the US added 742,000 private sector jobs in April.
A more comprehensive jobs report will come from the Labor Department on Friday. Nevertheless, it was enough to kick off a rebound in US tech shares after Fed chair Janet Yellen clarified comments on inflation she made yesterday (see below).
More mixed was the Institute for Supply Management’s (ISM) non-manufacturing purchasing managers’ index (PMI) which unexpectedly fell one point to 62.7 in April, missing the 64.3 consensus, although well above the 50 indicating increased activity over the previous month.
‘This is the fastest expansion of business activity across the US service sector on record,’ said John Leiper, chief investment officer at Tavistock Wealth. ‘The US…