2nd May 2025 16:54
(Alliance News) - European equities surged on Friday, supported by a more robust than expected US jobs report, as well as some hope on the tariff front.
The FTSE 100 index ended up 99.55 points, 1.2%, at 8,596.35. The FTSE 250 rose 105.54 points, 0.5%, at 20,240.51, and the AIM All-Share climbed 7.77 points, 1.1%, at 707.75.
For the week, the FTSE 100 added 2.2%, the 250s rose 3.2% and the AIM All-Share jumped 5.2%.
The Cboe UK 100 ended up 1.2% at 857.96 on Friday, the Cboe UK 250 rose 0.6% at 17,766.94, and the Cboe Small Companies added 0.2% at 15,401.58.
In European equities on Friday, the CAC 40 in Paris jumped 2.3%, while the DAX 40 in Frankfurt surged 2.6%.
The pound was quoted higher at USD1.3296 late on Friday afternoon in London, compared to USD1.3283 at the equities close on Thursday. The euro stood higher at USD1.1341, against USD1.1274. Against the yen, the dollar was trading lower at JPY144.36 compared to JPY145.50.
In New York, the Dow Jones Industrial Average was up 1.0%, the S&P 500 added 1.2% and the Nasdaq Composite shot up 1.3%.
The US labour market added more jobs than expected last month, numbers on Friday showed, though average earnings growth fell short of a slightly loftier estimate.
According to the Bureau of Labor Statistics, total nonfarm payroll employment increased by 177,000 in April, beating the FXStreet-cited consensus of 130,000. Jobs growth eased from 185,000 in March, a figure downwardly revised from an originally reported 228,000.
The April figure was "roughly in line with the average monthly gain of 152,000 over the prior 12 months", the BLS added.
"Tariff risks are yet to materially hurt the US economy, according to the latest non-farm payrolls report," XTB analyst Kathleen Brooks commented.
"Private sector payrolls were also stronger than expected, and at roughly the same rate as the downwardly revised figure for March, while the unemployment rate remained steady at 4.2%. The 3-month rolling average for payrolls was 155k, which is a healthy number considering the challenges facing the US economy since the start of this year."
Brooks added: "The question now is, now that it looks like President Trump has blinked when it comes to reciprocal tariffs, has the US economy avoided the worst of the damage since the Liberation Day turmoil? The markets seem to think so."
China said Friday it is evaluating a US offer for negotiations on tariffs but wanted Washington to show "sincerity" and be ready to scrap levies that have roiled global markets and supply chains.
SPI Asset Management analyst Stephen Innes commented: "China's Commerce Ministry just lobbed the first olive branch of the tariff showdown, confirming that Washington 'through multiple channels' has quietly signalled a willingness to talk. Beijing says it's now 'evaluating' whether to reopen negotiations—an overture we haven't seen since Trump cranked tariffs to century-high levels."
Hope for a tariff de-escalation lifted miners. Anglo American added 1.9%, while Antofagasta climbed 1.6%.
In London, Shell added 2.9%. The London-based oil major announced a new USD3.5 billion buyback, and boosted the quarterly dividend by 4.1% on-year to USD0.3580 per share.
Shell said adjusted earnings fell 28% to USD5.58 billion in the first quarter from USD7.73 billion a year ago. It was, however, ahead of Vara consensus of USD4.96 billion.
Revenue fell 6.0% to USD70.15 billion in the quarter from USD74.60 billion a year ago.
Basic earnings per share fell to USD0.79 in the quarter from USD1.14 a year prior, with adjusted EPS of USD0.92, down from USD1.20.
Harbour Energy added 5.2%. It said it has taken a final investment decision alongside its partners for the Southern Energy floating liquefied natural gas export project off the coast of Argentina.
The London-based oil and gas firm holds a 15% stake in the project, which will use two Golar LNG vessels - the Hilli Episeyo and MK II - to process and export around 6 million tonnes of LNG per year, equivalent to 1.0 billion cubic feet per day of natural gas.
The Hilli Episeyo is expected to start production around the end of 2027, followed by the MK II vessel in late 2028. Harbour's capital expenditure requirement until the start of operations is estimated at around USD100 million.
Harbour Energy said the project will benefit from investment incentives under Argentina's new RIGI law, which includes dollarised revenue for investors after three years of production.
"Taking final investment decision on Southern Energy marks a significant milestone for Harbour Energy," said Martin Rueda, managing director of Harbour's Argentina business unit. "It provides the opportunity to deliver value from our extensive resource position in Argentina and supports the country's ambition to become a material exporter of natural gas."
Brent oil was quoted higher at USD61.07 a barrel late in London on Friday, from USD61.38 late Thursday. Gold was lower at USD3,249.91 an ounce against USD3,311.72.
Financial markets are closed in London on Monday. They are also closed in Tokyo. Monday's economic calendar has a US composite PMI reading at 1445 BST.
By Eric Cunha, Alliance News news editor
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