London spurred by US employment stats

London recorded gains today after a static week after US employment figures were rosier than expected.

The non-farm payrolls data show despite the loss of 20,000 jobs, the number of unemployed people - 7.6 million - was lower than March's figure of 7.8 million, when unemployment stood at 5.1 per cent.

Forecasts of the job losses figure were as high as 80,000 before the announcement, according to a Reuters poll.

FTSE ended the day up just over two per cent at 6204.80.

In Europe the Dax and Cac were both up around 1.5 per cent and in New York the Dow Jones and Nasdaq started the day brightly.

Ryan Kneale, market analyst at City bookmaker BetsForTraders, said: "You could feel the tension today before the US non-farm payroll figures were released, as traders tried not to get too exposed.

"The actual figures were much better than expected and the equities markets, which were already up one per cent before the news, stepped up a gear and went into overdrive gaining more than half a per cent in a matter of minutes.

"This is great for the news for the market bulls, but essentially rules out any more rate easing by the Fed in the short term."

He added a lot of attention today was taken by miner Rio Tinto.

Reports in the Australian press suggest the firm's chairman is considering splitting up the firm to garner the best value for shareholders.

In the week coming up, the biggest waves are set to come from the Bank of England's and European Central Bank's rate decisions.

"The Bank of England is under pressure to get the UK economy back on track as weak housing data and consumer spending continue to be reported week after week. But I think it is too soon for another rate cut from the bank who is equally concerned with high inflation in the UK," Mr Kneale said.

"The ECB on the other-hand has been very hawkish regarding their key interest rate and although a rate move is highly unlikely, weak economic data has began seeping out of the Euro zone countries beginning to spook traders."

He added: "With the quarter one earnings season coming to an end, the companies to look out for during the next week in Europe are consumer products maker Unilever, Swiss investment bank UBS and Swiss insurer Swiss Re. Across the Atlantic we have earnings from Cisco Systems, Walt Disney and Mortgage provider Fannie Mae, but perhaps the most eagerly anticipated is insurer AIG.

"Any downside surprises will certainly cause ripples in the market, but we have already dealt with some bad figures so far and they have had little long term effect on the recent up trend."

Daniel Barnes. Additional reporting Sarah Routledge.