Good news on US jobs drives Footsie

THE Footsie yesterday burst through the 6,000-barrier for the first time in nearly a month after a report revealed the US unemployment rate fell to a two-year low in March.

The FTSE-100 index closed 101.16 points higher at 6,009.92 - a rise of 1.7 per cent - after the US labour department said the jobless rate fell to 8.8 per cent as companies added workers at the fastest month-on-month pace since the recession.

Wall Street's Dow Jones Industrial Average surged in early trading, up 0.8 per cent as the figures lifted confidence in the global recovery. Elsewhere, the DAX in Germany was ahead 2 per cent and France's Cac-40 was up 1.6 per cent.

Angus Campbell, head of sales at Capital Spreads, said: "The rebound goes to show that, for all those people who were sitting on the sidelines waiting for things to get a bit cheaper, there are plenty of people still willing to go long on the market."

Manufacturing data highlighted inflationary pressures in the UK, adding weight to the argument for an interest rate hike. This lifted the pound, which was up against the dollar at $1.61 and the euro at €1.13.

The banking sector surged ahead as traders shrugged off the implications of the Irish bank stress test results.

On Thursday, the central bank in Dublin confirmed the final bill for bailing out the beleaguered country's banks would be an eye-watering €70 billion (61bn). The figure initially sparked declines across the banking sector, but analysts said traders soon realised there was "little to fear".

Lloyds Banking Group led the sector, up 2.9p at 61p, while fellow taxpayer-backed bank Royal Bank of Scotland stood 1.6p higher at 42.3p.

Both banks are seen as being heavily exposed to the Irish economy. Barclays was ahead more than 4 per cent, up 11.9p at 289.5p, while HSBC advanced 14.1p to 655.1p.

Oil giant BP enjoyed a rare appearance on the risers' board after a poor run sparked by its deteriorating share swap and exploration deal with Russian government-owned Rosneft.

A bullish broker note from JP Morgan Casenove helped shares in the embattled firm advance nearly 4 per cent, or 16p to 470p.

Shares in Aberdeen-based energy services giant Wood Group jumped 5.1 per cent or 32.5p to 670p after it received regulatory approval in the US to sell its well support division to General Electric's energy manufacturing unit.

Retail giant Marks & Spencer was also in the spotlight after new boss Marc Bolland announced the chain's return to France a decade after it pulled out of the country.

The retailer is to launch a website in France and open a three-storey outlet on the Champs Elysees in Paris towards the end of 2011. M&S shares moved ahead following the announcement, up 2.2p to 338.9p.

Elsewhere in the retail sector, stocks hit hard by recent gloom pulled out of their tailspin. Dixons Retail steadied after two days of heavy declines sparked by this week's profit warning, with shares up 0.1p to 12.7p. Meanwhile, Primark-owner Associated British Foods was up 11p at 1,003p, B&Q parent Kingfisher was ahead 7.9p at 253.8p and Next added 20p to end the day at 2,000p.