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US jobs and manufacturing data help lift Wall Street by 1% and FTSE by 2%

A batch of new US economic data has given another lift to Wall Street at the US market’s open, and helped push London shares higher to boot.

The Dow Jones Industrial Average is more than 111 points higher in early trading, as mixed signals from the world’s largest economy renewed hopes that the US Federal Reserve would step in to provide another boost, possibly with more quantitative easing.

Ahead of the widely watched US non-farm payroll numbers on Friday, a report from ADP showed the pace of US private sector job creation slowing, up 91,000 in August compared to a revised figure of 109,000 in July and expectations of around 100,000. The non-farms are expected to show a gain of 75,000 jobs in the public and private sectors together.

Meanwhile the Chicago purchasing managers index slipped from 58.8 in July to 56.5 in August, although this was ahead of expectations of 53.5. The employment element of the index was at its lowest since July 2009.

But new orders for US factory goods rose by more than expected in July, up 2.4% compared to forecasts of 1.9%, boosted by orders for transportation equipment.

So the FTSE 100 has now climbed 114.12 points to 5382.78. © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds