The week was capped off with a solid gain in the equity markets with the US charging ahead after a better than expected employment number. The S&P 500 surged 15 points closing the week up 33 points or 3%. The Nasdaq composite rallied 32 points and created a new 52 week high. The FTSE also made a 52 week high on Friday, and the Russell 200 Index also joined the party.
The US Labor Department reported that the U.S. economy shed fewer jobs than expected in February and the unemployment rate was steady at 9.7% despite stormy weather on the East Coast last month. The report showed that nonfarm payrolls fell by 36,000 compared with a revised 26,000 drop in January. Economists polled were expecting payrolls to fall by 75,000 mainly because of the severe weather. The January figure was revised from an originally reported 20,000 decline to a 26,000 decline and December was revised up by 40,000. The unemployment rate, which is calculated using a different household survey, remained at 9.7% last month. Economists had forecast the jobless rate would edge higher to 9.8%.
In the U.K. factory gate prices posted their strongest annual gain in 14 months in February, fueled by increases in petroleum, electrical and other manufactured products, according to the Office for National Statistics.
Output producer prices rose 0.3% from January and were 4.1% higher than February 2009. In January, output prices rose 0.4% on a month-to-month basis and 3.8% on the year. The figures suggest there are underlying inflationary pressures in the economy as it emerges from its deepest recession on record, due in large part to a rebound in prices for petroleum products. Other manufactured products include scrap metal, bricks, wood products and mineral waters.