Beautiful Virgin Islands

Saturday, Apr 26, 2025

US Jobs Surge Triggers Global Market Sell-Off Amid Struggling UK Pound

US Jobs Surge Triggers Global Market Sell-Off Amid Struggling UK Pound

Wall Street's response to stronger-than-expected US labour figures exacerbates a downbeat sentiment in European and UK markets.
In a dramatic turn of events, fresh data revealing a surge in US employment has sent tremors through global financial markets.

Wall Street reacted sharply to the stronger-than-anticipated labour market figures, leading to a widespread sell-off, while the British pound continued its downward trajectory in a challenging environment for UK markets.

The FTSE 100, a key indicator of British economic health, experienced a significant decline, dropping 71.2 points, or 0.86%, to a close of 8,248.49.

This mirrored a broader global downturn, as investors grappled with the implications of the robust US jobs report.

The US Department of Labor's figures revealed an unexpected addition of 256,000 jobs in December, far exceeding analysts' forecasts of 164,000.

Such a development points to a strengthening US labour market, prompting concerns over persistent inflationary pressures.

Richard Flax, Chief Investment Officer at Moneyfarm, explained the broader impact, noting, "The unexpectedly strong data from the US labour market in December, showing payrolls surging by 256,000 against a forecast of 164,000, has deepened a global bond sell-off and raised concerns about persistent inflationary pressures in the US."

The robust employment data spurred a rally in the US dollar, subsequently increasing borrowing costs and driving the British pound to a 13-month low.

By the close of European markets, the pound had fallen approximately 0.7% against the dollar, reaching 1.222, and was down 0.2% relative to the euro at 1.193.

The continuing downturn of Sterling reflects broader macroeconomic vulnerabilities.

On the US front, major indices suffered notable losses.

The S&P 500 declined about 1.7%, while the Dow Jones experienced a 1.6% slip.

European indices were not spared; Paris's Cac 40 fell 0.79%, and Frankfurt's Dax dropped 0.5%.

UK bonds faced similar challenges, with the yield on long-term gilts approaching the previous day's sell-off peak.

The volatility in these markets is a testament to investors recalibrating expectations amidst uncertainty over the Federal Reserve's monetary policy stance.

Meanwhile, the oil sector saw Brent crude prices surge by 3%, reaching approximately 79 US dollars per barrel, following warnings from Centrica on low UK gas reserves.

This rise indicates a potential energy crunch as winter demands intensify.

In corporate developments, Sainsbury’s shares faltered, despite the supermarket chain reporting its "biggest ever" Christmas, propelled by strong grocery sales.

Sainsbury's remains confident in achieving its profit goals for the fiscal year, positioning retail operating profits within the projected £1.01 billion to £1.06 billion range.

Elsewhere, Alliance Pharma made headlines by consenting to a £350 million acquisition by DBAY Advisors, its primary stakeholder.

This acquisition news led to Alliance Pharma shares soaring by 37.8%.

Amongst the ups and downs of the FTSE 100, Intercontinental Hotels Group, Standard Chartered, IAG, Scottish Mortgage Investment Trust, and Centrica emerged as the biggest gainers.

Conversely, Schroders, Sainsbury’s, Diageo, Beazley, and Entain registered the most significant declines.

As global markets navigate this sea of change, heightened job figures from the US coupled with volatile currency and commodity movements emphasize the complexities faced by economies worldwide.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
×