London Market Report

  • Published

(Close): London shares benefited from solid job figures from the United States, as American employers added 217,000 new positions in May.

Trading was brisk in so-called cyclical stocks, which do well when economic prospects seem brighter.

The benchmark FTSE 100 index closed 0.66% higher at 6,858.21 points.

In the cyclicals, shares in the money managers St. James's Place were the FTSE 100 biggest gainers. They closed 4% higher.

Shares in Aberdeen Asset Management also fared well, putting on 3.6% by the close.

Elsewhere, British Airways' parent firm, IAG, gained 3.7%, as the shares continuing to gain on strong passenger numbers released earlier in the week.

Tobacco and drinks makers, often seen as more defensive plays, lost ground on the US jobs figures and the somewhat rosier economic picture from the United States.

The spirits maker Diageo lost 1.6%, and Imperial Tobacco was down 1.3% by the close.

The world's biggest temporary power provider, Aggreko, rose 1.9%, after analysts at Jefferies rated the stock a "buy" in a note to clients. They said the company had "sizeable" opportunities in South America.

Bid speculation reported in the Daily Mail pushed shares in Centrica 1.5% higher. The newspaper said the utility company was attracting takeover interest from investors in the Middle East. Centrica did not comment on the report.

The pound dipped 0.17% against the dollar to $1.6792, and rose 0.01% against the euro to 1.2314 euros.