LIVE: FTSE and European markets mixed as US jobs market holds steady

How major markets are performing on Friday

Trader Robert Arciero, left, and specialist Michael Pistillo work on the floor of the New York Stock Exchange, Wednesday, Aug. 30, 2023. Stocks are edging mostly higher in early trading on Wall Street chipping a bit more away from the market's losses in August. (AP Photo/Richard Drew)
The FTSE rose on Friday despite figures showing a downturn in manufacturing output had deepened in the UK, while US stocks rose as payrolls data topped estimates. Photo: AP Photo/Richard Drew

The FTSE rose on Friday despite a read on manufacturing which showed a downturn in output had deepened in the UK, while US stocks rose as payrolls data topped estimates.

The S&P Global manufacturing purchasing managers' index (PMI) showed output at a 39-month low of 43.0. Any reading below 50 indicates contraction.

Demand was hit by weaker domestic and export conditions, S&P Global said, citing rising interest rates, the cost-of-living crisis, export losses and concerns about the market outlook.

Meanwhile, purchase prices fell at the quickest pace since January 2016 in August, the data shows.

Manufacturing staffing levels were cut for the eleventh successive month in August. Companies linked lower employment to reduced intakes of new work, falling output volumes and cost control efforts. Excess capacity at factories was also cited by some firms, as backlogs of work contracted to the greatest extent since April 2020.

Read more: UK house price growth in August weakest since 2009

On Thursday, it was revealed that eurozone inflation remained unchanged month-on-month in August, at 5.3%. European Central Bank president Christine Lagarde hinted at a pause in the rate hike cycle following the release.

The FTSE (^FTSE) was up 0.5% by the afternoon, while the Dax (^GDAXI) in Germany fell 0.5% and the Cac (^FCHI) was down 0.2% in Paris.

Meanwhile, stocks in the US ticked upwards, with the S&P 500 (^GSPC) rising 0.3%, the Dow (^DJI) up 0.5% and the Nasdaq (^IXIC) rising 0.1%.

The moves came as fresh data showed that US payrolls grew by 187,000 in August, topping estimates.

The number of new jobs added in August was the same as the number of new jobs in July. This shows that the labour market is resilient even with high interest rates and inflation.

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