FTSE 100 climbs as US jobs report calms rate hike fears

The FTSE 100 began the week on a positive note following the release of the US non-farm payrolls report, which eased concerns about multiple interest rate hikes. The index climbed above 10,500 in early trading before paring some of its gains as the day progressed.

Investors reacted positively to the weaker-than-expected US jobs data, interpreting it as a sign that the Federal Reserve might slow down its rate hikes. Russ Mould, investment director at AJ Bell, noted that the market took the weaker economic data as a relief on the rate hike front, driving gains in Asia and Wall Street.

However, the rally was limited by rising oil prices, which remain above $100 per barrel due to ongoing uncertainties in the Middle East. Susannah Streeter, Chief Investment Strategist at Wealth Club, highlighted that elevated crude costs are adding pressure on companies and consumers globally.

Interest rate-sensitive sectors, particularly those tied to the UK housing market, saw declines. Shares of Barratt Developments, Howden Joinery, and Kingfisher dropped. In contrast, Ithaca Energy led the gains after announcing the acquisition of Canadian assets, boosting its shares by 3.1%. BT also rose by 2% following its takeover of TalkTalk, while commodity companies like Shell, Antofagasta, and BP contributed to the FTSE 100's positive movement.