The FTSE 100 gained on Monday as the wave of positive sentiment established by robust US jobs data on Friday pushed into a second session.
A bumper Non-Farm Payrolls reading on Friday confirms the US economy can stomach the high-interest rate environment.
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The 353,000 increase in the headline jobs added may have unnerved some equity investors concerned the Federal Reserve would push the first rate cut even further into the future.
Instead, US stocks surged higher in Friday’s session, suggesting equity bulls are happy for rate cuts to be put off as long as the US economy remains supportive of earnings.
“The markets continue to forge ahead despite a blowout jobs report from the US last Friday which seems to have finally put the nail in the coffin of the idea rates will be cut next month,” said AJ Bell investment director Russ Mould.
“The FTSE 100 clawed its way to its best levels…
