European markets rebound as US shuts for Labour Day

Global shares kicked off the week with a strong start, even as markets in New York remained closed.

The FTSE 100 notched up a 0.7% rise, putting it a little behind the main index in France, up 0.8%, and Germany, where the Dax rose 1%. US markets were closed for Labour Day.

The FTSE’s 48.83-point gain put it at 7,187.18 by the end of the day.

It was a good performance for the index following a tough end to last week, following a report which showed that only a third of the jobs that economists expected would be created in the US in August actually materialised.

“Having started the day with gains, indices across Europe have held on to their bullishness throughout the session, with Friday’s nervousness being swept aside,” said Chris Beauchamp, chief market analyst at online trading platform IG.

“After all, a poorer outlook for US jobs would most likely prompt a significant delay for the Fed’s tapering programme, keeping support measures in place and providing a rationale for further equity inflows, in a revival of the ‘bad news is good news’ trade of yesteryear.”

Ryanair took off on the London market, gaining a stable 1.9% after it walked away from talks with Boeing, the aircraft maker, after the two were unable to agree a price for new planes.

“On the travel front, Ryanair’s fired a shot across Boeing’s bow by ditching plans to add the Max 10 to its stable because it said the price wasn’t right,” said AJ Bell financial analyst Danni Hewson.

“The budget airline’s colourful chief executive poured a little salt into the wound with canny comments about other airlines plumping for Airbus in recent weeks.

“Ten months of talks couldn’t secure a deal and leaving the field whilst complimenting a rival’s colours might be seen by some as an interesting tactic ahead of the next round.”

In currency markets, the pound could buy 1.383 dollars or 1.1655 euros by the time markets closed in Europe. Both exchange rates were practically unchanged on the day before.

In other company news, Goldman Sachs announced on Monday that it will list a portfolio of alternative assets called Petershill Partners for £3.6 billion on the London exchange.

The US giant said the listing would allow investors to tap into gains from hedge fund and private equity investments.

The biggest risers on the FTSE 100 were ITV, up 2.9p to 117.05p, Burberry, up 43p to 1,935p, Intermediate Capital Group, up 46p to 2,299p, Experian, up 66p to 3,313p, and Rentokil, up 11.8p to 592.8p.

The biggest fallers on the FTSE 100 were Rio Tinto, down 71p to 5,337p, United Utilities, down 14p to 1,482.5p, British Land, down 4.8p to 537p, Pershing Square, down 20p to 2,565p, and Segro, down 9.5p to 1,286.5p.