FTSE strong despite US jobs blow

The FTSE 100 Index remained in positive territory despite a shaky start to trading on Wall Street after disappointing US jobs figures.

America’s Dow Jones industrial average struggled to make headway after figures revealed a smaller than expected rise in the number of US jobs created in January.

The Footsie maintained gains, up 21.2 points to 6004.5, led by water companies on signs that the UK’s inflationary bubble will boost results.

Severn Trent and United Utilities added 5% after Bank of America Merrill Lynch introduced buy ratings on the pair to reflect higher inflation. Severn was up 65p to 1455p and United lifted 27p to 582p.

Second-tier stocks Pennon and Northumbrian Water were raised to neutral from underperform, helping them rise 9p to 626p and 6.9p to 315.4p respectively.

Oil giant Royal Dutch Shell extended Thursday’s 3% loss with a 1% fall, down 16p to 2161.5p, after its fourth quarter profits and production performance left investors cold. Other energy stocks remained in the red, with BG Group off 2p to 1432.5p.

Cairn Energy was the biggest Footsie faller, down 11.4p to 426.6p, after reports that Vedanta Resources was considering pulling out of a deal to buy a majority stake in Cairn India.

And Thomson owner TUI Travel remained under pressure due to the impact of Egypt’s civil unrest on the holiday plans of thousands of customers. Shares dropped another 2.7p to 240.3p.

Outside the top flight, ITV surged 3.6p to 83p, as Tuesday’s bullish statement from RTL, Europe’s largest free-to-air broadcaster, continued to have a positive impact on the stock ahead of its results in March.

Retailer HMV rose 5% or 1.25p to 24p, boosted by speculation that private equity and former retail bosses are eyeing the business for takeover.