FTSE 100 close: Prudential results give London markets a boost after US jobs data
London markets finished higher on Wednesday with the capital’s premier FTSE 100 index given a lift by strong results from Prudential.
The FTSE 100 index climbed 0.1 per cent to close at 7,473.67 while the mid cap FTSE 250 index rose 0.5 per cent to end at 18,564.52.
Prudential was among the FTSE 100’s top risers, climbing 2.0 per cent after impressing investors with its earnings.
Adjusted operating profits were up 6 per cent to to $1.5bn in the first half of the year. New business profits meanwhile ticked up 39 per cent in the period to $1.5bn, above expectations.
The Asia-focused insurance giant also announced a new strategic plan including ramping up its growth across outside of Europe and prioritising dividends for investors.
Fellow insurer Direct Line fell 1.4 per cent after it appointed Adam Winslow as its new CEO, joining from Aviva.
Natural resources companies Fresnillo and Rio Tinto also saw gains, rising 2.9 per cent and 0.9 per cent respectively. Resource giants have performed well, despite concerns over the Chinese economy, as speculation grows that the government will be forced to intervene.
Markets were also given a lift by data out this afternoon which showed a slowing in the US labour market.
US private payrolls increased less than expected in August, the latest indication that the labour market was losing steam.
Private payrolls rose by 177,000 jobs last month, the ADP National Employment report showed. Economists polled by Reuters had forecast private employment would increase by 195,000.
The figures will bolster speculation that the Fed will not hike rates again at its next meeting. An easing in the labour market suggests that the Fed’s attempts to cool the economy are working.
“Signs of America’s cooling economy have raised hopes that the pause button will be pushed on punishing interest rate hikes,” Susannah Streeter, head of money and markets, Hargreaves Lansdown said.
“Data is king right now in terms of market sentiment and the non-farm payrolls snapshot out on Friday will crown the week. If it points to a fresh slowdown in hirings, we could see another spurt in stock prices,” Streeter continued.