Tapering delayed? Markets climb after US jobs data disappoints
Payrolls in the US rose less than projected in August, while there were revisions to the previous two months’ figures, painting a more bleak picture of the country’s recovery.
The number of people in work rose by a worse-than-expected 169,000 in August, undershooting the 180,000 expected by economists, while July’s figure was revised down to a gain of 104,000.
Despite the latest setback, the unemployment rate fell unexpectedly as more people left the labor force, with the overall figure down marginally from 7.4% the previous month to 7.3%, its lowest level since December 2008.
However, investors are reading the figures as a sign the planned tapering operation by the Fed will now be delayed.
The FTSE 100 was up 0.3% or 22 points at 6,554 as the US market opened, just off day-highs seen shortly after the jobs data was released.
US markets have also started strongly with the S&P 500 up 0.3% at 1,660 points, and the Dow ahead 0.2% at 14,971.