FTSE 100 soars, big NFP miss sees weaker USD, yields fall By Investing.com

Key Points

• FTSE 100 closing price of 7,130, +0.8%
• Second biggest Nonfarm Payrolls miss of all time
• USD weakens after data
• Yields tumble
• Cryptos steady ahead of Musk TV appearance

By Samuel Indyk

Investing.com – The FTSE 100 finished the week on a high note as a huge Nonfarm Payrolls miss has put any question of Fed tapering on the backburner for now. The US created just 266,000 jobs in April, well below the expected 978,000, while the March payrolls figure was also revised markedly lower.

Shares in St. Modwen Properties (LON:SMP) were the best performing in the UK’s FTSE 250 after the company said it had received a takeover approach from Blackstone (NYSE:BX) for 542 pence per share, a 21.1% premium over Thursday’s closing price.

UK aerospace company Meggitt (LON:MGGT) also saw its shares rally amid reported US takeover interest. Dealreporter said Woodward (NASDAQ:WWD) has hired banks as it considers potential M&A opportunities and the FTSE 100 company could be a possible target.

Moves in currencies were dictated by the Nonfarm Payrolls data. The USD sold off following the weaker than forecast report with the US Dollar Index dropping to its lowest level since February 26th. The weaker USD helped GBP/USD push back towards the psychological 1.4000 handle while EUR/USD made a firm break back above 1.2100.

Bonds vaulted higher after the data with the United States 10-Year yield dropping below 1.5% before paring back some of the move.

WTI and Brent crude futures were trading flat to slightly lower but still look to record weekly gains. The US data did little to dent energy markets as hopes of a demand rebound continue to underpin the market.

Cryptocurrencies have been relatively stable over the last 24 hours as markets await Elon Musk’s appearance on Saturday Night Live. The cryptocurrency advocate is expected to mention Dogecoin which some have suggested could provide another leg higher for the meme-based cryptocurrency.

Of note, yesterday’s Bank of England meeting saw Governor Andrew Bailey warn investors about cryptocurrency markets, saying investors should be prepared to lose all their money.

Looking ahead

Next week, the UK’s Office for National Statistics released GDP and industrial production figures.

On the earnings front, BT Group (LON:BT) and Rolls-Royce (LON:RR) will be in focus from the UK while investors will get a first look at Coinbase’s (NASDAQ:COIN) financials as a public company when they release Q1 figures on Thursday.