Markets rise ahead of US jobs report - business live
America's non-farm payroll beats forecasts, but slight fall in average earnings 'taints' the picture
- Latest: FTSE 100 hits new closing high
- White House welcomes Non-Farm report
- 242,000 new jobs created in February <- coverage starts here
- Jobless rate remains at just 4.9%
- Bad news: wages fell by 0.1% month-on-month
5.51pm GMT
In a late development, President Obama has just spoken to reporters after a meeting with his economic team.
JUST IN: Obama says America "pretty darn great" right now, not in line w/ political rhetoric, US econ. is envy of world despite headwinds
4.54pm GMT
A new burst of market optimism has driven shares in London to their highest closing level since the start of 2016.
Mining stocks drove the market higher, helped by the sight of copper and iron ore prices touching their highest levels since last autumn.
Shares in Europe added to early gains after the US employment report eased concerns of a slowdown in the US economy without increasing chances of a faster pace of rate increases by the Federal Reserve.
Major averages in both the US and Europe are on track for a third successive week of gains. The strength in equities is largely thanks to oil prices being back close to where they started the year but today's gains were reinforced by the biggest rise in the fix for the Chinese yuan in three weeks.
4.15pm GMT
The stock markets are pushing higher, as investors dash to buy shares before the European close in 15 minutes time.
Wall Street is now in positive territory, and the FTSE 100 is up 68 points at 6,200, again of 1.1%. Mining stocks continue to lead the rally, amid chatter that the commodity crunch has hit a bottom.
It's risk-on Friday, again! That's 3 Friday's out of thr last 4. New normal?
4.06pm GMT
Bloomberg News' Matt Boes has been truffling through the Jobs Report.
He's spotted that unemployment among America's Hispanic workers fell sharply last month. And the rate of retirements across the labor market dipped a little too.
One really bright spot in the jobs report: Hispanic or Latino unemployment rate plunged last month pic.twitter.com/1gffkv2kdR
Looks like a bit of a slowdown in the "retirement rate" lately but still elevated relative to previous years pic.twitter.com/HDvoCgDt5X
3.07pm GMT
Jason Furman, who chairs president Obama's Council of Economic Advisers, insists that "This is a very good report".
2.48pm GMT
The drop in average earnings has tainted an otherwise solid US jobs report, says David Cheetham, market analyst at online trading platform XTB.com.
Overall the report paints a fairly strong picture of continued strength in the US labour market with the 4-month moving average remaining firmly above the 200k mark and the unemployment rate of 4.9% remains near its lowest level in a decade.
The first contraction in average hourly earnings since January last year came as an unexpected shock, although having said that there remains little evidence here of any real weakness in the labour market that would be prohibitive for Fed rate hikes in the not too distant future.'
2.45pm GMT
The financial markets are not particularly impressed by today's jobs report.
2.35pm GMT
Despite a month-on-month fall in wages, overall today's report bodes well for consumption, says Nina Skero, senior economist at the Centre for Economics and Business Research.
Strong job creation will make consumers both more able and, via boosted consumer confidence, more willing to spend.
A healthy consumer spending outlook is especially important for the US economy as the country faces challenges on other economic fronts.
2.30pm GMT
Richard de Meo, managing director of Foenix Partners, is quite upbeat about the Non-Farm Payroll.
He reckons it has "shaken off the doubters" who thought the US economy was weakening.
2.28pm GMT
Today's jobs report is a mixed bag, says Paul Ashworth of Capital Economics.
But on balance, he thinks it could tee-up a Federal Reserve rate hike this summer:
Overall, it's clear that labour market conditions are still strong. The lack of a more marked pick-up in wage growth is the only missing element.
But as far as the Fed is concerned, it is already seeing a clear acceleration in core price inflation, so it can't delay raising interest rates for much longer. A June rate hike is coming.
2.24pm GMT
Ian Shepherdson, economist at Pantheon Macroeconomics, has a cunning theory to explain the surprise dip in earnings (from $25.38 per hour to $25.35).
He thinks it's all in the timing. Workers who are paid every fortnight would have received their second wage payment on 15th February, three days AFTER the Non-Farm Payroll survey took place.
Don't be taken in by the dip in hourly earnings; it just continues a very consistent pattern of undershooting in months when the 15th - payday for people paid semi-monthly - falls after the employment survey week.
Same thing in March, but then there'll be a huge rebound, putting year-on-year wage growth at new highs.
Looked at the calendar effects on hourly earnings changes a few months ago ... Feb. 12 was a Friday this year pic.twitter.com/p17BiIm31P
2.13pm GMT
Financial commentators agree that today's Non-Farm Payroll report shows solid job creation, but lacklustre wage growth.
Here's some reaction:
Headline payrolls number strong. However, the devil continues to be in the details. The quality of jobs added is terrible.
Labor force has grown by 1.52m in the last three months, strongest three-month rise since early 2000.
Your monthly reminder that virtually all the employment gains in the recovery have been full-time. pic.twitter.com/DWQaBjyPUG
US non-farm payrolls rose 242k in February, well above consensus of +190k. However, wage growth slowed to 2.2% (2.5% in Jan)
2.07pm GMT
Most of the jobs created in America last month were in healthcare, retail, and in bars and restaurants.
Here's a breakdown
Among the major worker groups, the unemployment rates for adult men (4.5%), adult women (4.5%), teenagers (15.6%), Whites (4.3%), Blacks (8.8%), Asians (3.8%), and Hispanics (5.4%) showed little or no change in February.
1.49pm GMT
More Americans are returning to the jobs market.
The labor force participation rate rose to 62.9% from 62.7% in February. That means more people are either in work, or looking.
Don't look now, but it's starting to look like Americans are coming back to the labor force. #jobsday pic.twitter.com/KrZzydu7Vi
1.45pm GMT
Alan Krueger, Princeton economics professor, says the fall in earnings last month is a blow.
Speaking on Bloomberg TV, he says:
I'm surprised that we didn't see a pickup in wages....This report, behind the headline jobs number, is disappointing.
1.40pm GMT
Despite a pretty big beat on headline, worth noting that US average hourly earnings fall for first time since 2014!! #NFP
1.39pm GMT
Put the confetti away. Although job creation was strong, wage growth was not.
Average earnings of America's private workers FELL by 0.1% during February, reversing the 0.5% rise seen in January.
In February, average hourly earnings for all employees on private nonfarm payrolls declined by 3 cents to $25.35, following an increase of 12 cents in January.
Average hourly earnings have risen by 2.2 percent over the year.
A big number and bad hourly earnings is not a tightening labor market
not good in that respect
1.37pm GMT
Job creation was quite broad-based last month.
The Bureau for Labour Statistics says:
Employment gains occurred in health care and social assistance, retail trade, food services and drinking places, and private educational services,
Job losses continued in mining.
1.34pm GMT
The US unemployment rate remains at an eight-year low of 4.9%.
Non-farm payrolls grew 242k last month -- much stronger than expected. Unemployment rate unchanged at 4.9%, as expected.
1.31pm GMT
Here we go!
The US economy created 242,000 new jobs last month -- a better performance than expected.
1.17pm GMT
Augustin Eden, research analyst at Accendo Markets, reckons Wall Street will be most interested in the earnings figures:
We expect markets to concentrate on wage growth rather than non-farm payrolls. It is, after all, inflation that's the key metric for the Fed right now.
1.07pm GMT
The waiting is nearly over.
In 30 minute time, the latest US jobs report will hit the tape and we'll know how America's employment market performed last month.
#NFP
HSBC 220k
BNP, JP 215k
MS 210k
BarCap, Citi 200k
DB, Exp. 195k
Credit Ag 190k
CS 185k
UBS, WFC, BofAML 175k
Jefferies 165k
#NFPGuesses +82k
Even the most hawkish Fed members have stopped giving overly optimistic speeches, instead becoming more cautious about the US outlook.
More and more market participants are wondering if the US economy is on the edge of a recession or whether this is just a temporary setback (apparently the temporary setback has become seasonal since last year"). In our opinion, it is still too early to ring alarm bells."
12.36pm GMT
Brazilian markets flying for second day as corruption scandal reaches near heart of ruling Workers' Party. Absolutely on fire.
12.27pm GMT
Demand for Brazilian assets is surging today, after former president Luiz Inicio Lula da Silva was detained by police.
Lula was dragged into the long-running corruption scandal that has gripped Brazil for months, when federal officers raided his house early this morning.
The detention of the influential Workers party politician - who is best known by his nickname Lula - marks a dramatic new phase of the Lava Jato ("carwash") probe into bribery and kickback allegations involving the nation's leading companies and dozens of congressmen.
It is likely to further add to the pressure on the government of president Dilma Rousseff, who is already struggling with an impeachment challenge, economic recession and the Zika epidemic.
Brazil real flying as former Prez Lula's house raided by police. Rumors Dilma will resign as early as this weekend.
CEO's resign and stock prices rise all the time but the BRL performance on the Lula arrest is some sublime price action
11.41am GMT
Today's flurry of optimism is also pushing copper to its highest level since mid-November, as Reuters reports:
Copper prices rose to their highest in nearly four months on Friday, boosted by optimism about demand prospects and output cuts that will help the market move towards balance.
Benchmark copper on the London Metal Exchange was up 1% at $4,905 a tonne at 1048 GMT, on course for its largest weekly gain since September last year.
11.28am GMT
Iron ore has hit its highest level since last October this morning, continuing a recent rally.
Iron ore rally continues - price jumped 5% today to $53.75/ton a new 5-month high on @IronOreIndex pic.twitter.com/mTnh5DJs7B
11.18am GMT
Here's our take on today's car figures:
Related: UK car registrations highest since 2004
11.09am GMT
It's a bleak morning for workers at troubled UK high street chain BHS.
The retailer intends to make 220 people redundant in stores and 150 people in head office. Another 100 roles that had not been filled in BHS's head office in recent months will also be scrapped, meaning its central operations will shrink by roughy a third.
BHS bosses briefed staff about the job losses and the turnaround plan on Friday morning.
Related: BHS plans to make 350 redundant in head office and shops
10.57am GMT
The FTSE 100 is on track to close at a new 2016 high, although the US jobs report could yet change that.
After three hours of trading, the blue chip index is up a steady 0.5% at 6161 points.
"We didn't believe the 'world is going to end' story, but the way the mood has changed in the last couple of weeks is just crazy."
Since the beginning of the year it has been like driving down the motorway where every couple of miles a tractor has overturned, whether that be China, oil, the banks, that you have to swerve around."
#EmergingMarkets rebound, for now https://t.co/3b0FHesQIB pic.twitter.com/geaUOgQxXd
10.30am GMT
Money has been pouring back into gold this morning, driving the price of billion up to a 13-month high.
Gold just hit $1274.50 an ounce, up 1% today, its highest point since February 2015.
Gold enters first bull market since 2013 https://t.co/4wLibADpDs pic.twitter.com/jdLHYc97xh
10.20am GMT
The London Stock Exchange has shown by two rivals want to leap into bed with it, by posting a 31% jump in profits for the last year.
"It's been a solid year for the LSE.
The focus of course now is whether a rival bid emerges from ICE that could spark a bidding war, or if the firms major shareholders remain convinced a tie up with Deutsche Birse on the already announced conditions is the best way forward for the trading house."
Related: London Stock Exchange backs Deutsche Birse merger as profits rise
9.41am GMT
Britain's car industry has posted its strongest February sales growth in 12 years, despite another drop in demand for Volkswagen cars
New figures from the SMMT show that the new car market grew by 8.4% year-on-year last month,
9.24am GMT
Back to economics...and Italy's statistics office has confirmed that the Italian economy grew by a measly 0.1% in the last three months of 2015.
9.17am GMT
Newsflash: Social networking giant Facebook is shaking up its corporate set-up, which should mean it pays rather more tax in the UK.
Breaking: Facebook to pay millions of pounds more in UK tax after abandoning large parts of controversial Irish tax structure, BBC reveals
On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland,
What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.
8.54am GMT
Advertising giant WPP has flagged up the EU referendum as a clear risk to growth prospects this year.
"The somewhat surprising result of the UK general lection (at least to the pollsters), with the Conservatives winning an overall majority, has resulted in an uncertainty-stimulating EU referendum, now pegged for 23 June."
Related: Sorrell warns ad industry against 'Don Draper-ish' optimism as EU vote looms
8.43am GMT
Mining shares are now at a four-month high, having rocketed by 25% this year:
Miners on a tear to end the week...gold enters bull market, as do Brazilian stocks pic.twitter.com/hkJ4gGeTNH
8.16am GMT
European stock markets are rising at the start of trading, as investors get ready for his afternoon's US jobs data.
In London, the FTSE 100 has gained 35 points, or 0.6%, to 6166 - which is nearly its highest level this year.
London's FTSE-100 is making another pitch higher in early trade despite yesterday's suggestions that the bulls may be running out of momentum.
Gains are broad based with natural resources stocks once again finding themselves at the top of the board with continued gains for underlying metals prices still lending support here.
8.03am GMT
After a very ropy start to 2016, world stock markets are now at a two-month high
That's according to the MSCI World Market index, which tracks shares in 46 different countries.
There is an air of fatigue from the bulls in a number of developed equity markets, but they continue to grind higher....
But the market is in need of some injection of new news to provide an injection of inspiration and cause a new leg higher. It seems unlikely this inspiration comes from today's US payrolls.
7.51am GMT
Stock markets across Asia have rallied today as investors express optimism ahead of this afternoon's America's employment report.
Over in Tokyo, the Nikkei gained 0.3%. That pushed the Japanese index to a one-month high, up over 5% this week.
Globally, markets are rolling back the extreme risk-off trading they did in January and February.
"Part of the reason is that the Fed seems to be easing its insistence on raising rates."
#Japan's Nikkei ends up 0.3% at 17014.78, highest level since Feb4. pic.twitter.com/eAyQ8OfTuB
Shanghai Comp ends up 0.5% as #China's brokerages ease margin financing requirements ahead of party congress. pic.twitter.com/byoHawjON8
7.33am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, business and the eurozone.
One more heave, chaps. After a heavy week for economic data, it's the big one today - the US Non-Farm Payroll for February, which is due at 1.30pm GMT.
Our European opening calls:$FTSE 6155 up 25
$DAX 9790 up 38
$CAC 4435 up 19$IBEX 8809 up 42$MIB 18442 up 94
#LSE makes no comment in its results about speculation of a counter bid from ICE
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