UK's FTSE rises after US jobs data, Tullow Oil outperforms
LONDON, Sept 6
LONDON, Sept 6 (Reuters) - Britain's main share index rose on Friday, after weaker-than-forecast U.S. jobs data added to expectations that the U.S. Federal Reserve would not abruptly scale back economic stimulus.
The blue-chip FTSE 100 index, which had been trading flat for much of the day, rose by 0.5 percent to 6,562.32 points after the publication of the U.S. non-farm payrolls jobs data.
Oil explorer Tullow Oil topped the FTSE 100's leaderboard with a 2.6 percent gain after striking oil off the Norwegian coast.
The U.S. Labor Department said on Friday that 169,000 jobs were added last month - below economists' forecasts for 180,000 new jobs.
Traders said the weaker-than-expected data could delay the Fed from scaling back its monetary stimulus programme - known as "quantitative easing" (QE) - that has driven much of the 2013 equities' rally.
"The thought that 'QE' may be cut this month will be put on hold," said Hartmann Capital trader Basil Petrides.
However, Petrides backed using days when the market rose to sell equity holdings for a profit, arguing that he felt the FTSE would still lose ground in September.
Any fall in the FTSE this month could push the index back down to the 6,250-6,300 point level, he said.
The uncertainty over when the Fed may start to tighten its monetary policy, coupled with rising bond yields and a rise in the oil price related to Syria's civil war has led many investors to take a cautious stance.
"I would be a seller of rallies at the moment. I still think September will be a corrective month," said Petrides. (Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)
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