Services-sector reading exceeds expectations
Continue Reading Below
U.K. stocks finished slightly higher Friday and notched an all-time closing high, though the move up was limited by an upturn for the pound.
London's blue-chip benchmark also scored a weekly advance.
What markets are doing: The FTSE 100 index rose 0.1% to end at 7,560.35, topping its record close of 7,556.24 achieved on Oct. 12.
The pound , meanwhile, drove up to $1.3072, bouncing up from $1.3058 late Thursday in New York. It rose as high as $1.3133 on Friday.
For the week, the U.K. stock gauge rose 0.7%, bouncing back after two weeks of declines.
Continue Reading Below
What's moving markets: The FTSE 100 erased some of its gain Friday as the pound marched higher against the greenback following the October U.S. jobs report. Roughly 75% of revenue for FTSE 100-listed multinational companies is generated in foreign currencies, according to FactSet data, so pound strength can hurt shares of those companies.
261,000 U.S. nonfarm jobs were added in October, compared with an expected increase 325,000 in a MarketWatch survey of economists. Meanwhile, wages fell a penny to an average of $26.53 an hour, slowing the year-over-year increase in hourly pay to 2.4%.
Read: U.S. adds 261,000 jobs in October in hurricane-inflated gain (http://www.marketwatch.com/story/us-adds-261000-jobs-in-october-in-hurricane-inflated-gain-2017-11-03)
The FTSE 100 had traded more convincingly above its record closing high earlier Friday as the pound continued to struggle after Thursday's mauling. Sterling had tumbled 1.4% against the dollar, the largest percentage loss since June 9, FactSet data showed, after the Bank of England hiked its key interest rate for the first time in 10 years, but also sounded unlikely to raise rates again soon.
See:BOE delivers a 'typical dovish hike'--analysts react to historic U.K. rate rise (http://www.marketwatch.com/story/boe-delivers-a-typical-dovish-hike-analysts-react-to-historic-uk-rate-rise-2017-11-02)
Also: 5 key Carney quotes after BOE hikes rates for first time in a decade (http://www.marketwatch.com/story/5-key-carney-quotes-after-boe-hikes-rates-for-first-time-in-a-decade-2017-11-02)
What strategists are saying: "Though the headline jobs number was below expectations, upward revisions for September and August show the U.S. economy continues to create jobs at a decent rate," said David Lamb, head of dealing at Fexco Corporate Payments, in a note.
"Of greater concern is the slowing rate of wage growth, which is set to be the most likely impediment to the Fed's dovish new chairman pulling the trigger on a December hike," he said.
Stock movers: Among multinational companies, shares of tobacco company Imperial Brands (IMBBY) fell 1%, medical-technologies company ConvaTec Group PLC (CTEC.LN) lost 2.3%, and drugmaker Shire PLC (SHPG) declined 0.3%.
British Airways parent IAG (IAG.LN) turned lower and fell 1.5%. The shares had been up earlier after the air carrier raised its earnings and other long-term targets (http://www.marketwatch.com/story/british-airways-parent-iag-lifts-earnings-target-2017-11-03).
Economic docket: A reading on services-sector activity for October came in at 55.6, above the 53.3 expected (http://www.marketwatch.com/story/uk-services-pmi-rises-to-556-beating-forecasts-2017-11-03) in a FactSet consensus estimate.
Read:'Soft' Brexit will propel U.K. stocks, says Thornburg fund manager (http://www.marketwatch.com/story/soft-brexit-will-propel-uk-stocks-thornburg-fund-manager-says-2017-11-02)
(END) Dow Jones Newswires
November 03, 2017 13:19 ET (17:19 GMT)