Business

FTSE 100 powered higher by miners

Market trader (file picture) Image copyright Getty Images

(Close): The FTSE 100 surged into the weekend helped by favourable economic data and strong mining shares.

A weakened dollar helped boost commodity prices, which in turn boosted mining shares. Glencore jumped 3.4% and Anglo American rose 2.7%

That helped the FTSE 100 to a 2.2% gain, leaving it at 6,894.

One big event for traders was the release of the US employment report for August, which showed that 151,000 jobs were created last month.

That was fewer than many economists had been expecting and undermines the argument for an increase in interest rates when the US Federal Reserve meets later this month.

Dollar weakness

"Today's jobs data has raised expectations that a US rate hike could be delayed," said Jawaid Afsar, senior trader at Securequity.

"A weakness in the dollar following the payroll numbers has helped commodities, which have a heavy weight on the benchmark FTSE 100 index."

A positive report on the UK construction sector also helped.

Shares in the transport group Go-Ahead soared more than 10% after it reported results. The company said profit rose 27% to £99.8m, despite troubles at railway operator Southern, which it co-owns.

On the currency markets, the pound was 0.2% lower against the dollar at $1.3299.

It was 0.6% higher against the euro at €1.1918.