FTSE Flat and US Stocks Waver Traders React to US Jobs Data and Trump’s Trade War Impact

On Friday, the FTSE remained flat, and US stocks experienced volatility as traders digested the latest US jobs report and ongoing trade war developments under President Donald Trump. The data revealed that the US economy added fewer jobs than expected, while uncertainty around tariffs continued to weigh on global markets.

US Jobs Report: Key Takeaways

The February non-farm payroll report showed that the US economy added 151,000 jobs, slightly below the 160,000 forecast by economists. However, this marked an improvement from January, driven by unseasonably warm weather and the recovery of West Coast businesses following the LA wildfires.

Despite the job gains, the US unemployment rate edged up to 4.1%, returning to December 2023 levels. This mixed data left investors cautious, as they assessed the health of the US labor market and its implications for Federal Reserve policy.

Trump’s Tariff Decisions Rattle Markets

President Trump’s decision to delay tariffs on imports from Canada and Mexico provided temporary relief but failed to calm investor nerves. The constant shifts in trade policy have created uncertainty, leaving companies and investors struggling to adapt.

Russ Mould, Investment Director at AJ Bell, commented: “The ongoing uncertainty around tariffs has weighed heavily on global stock markets. While Trump’s exemptions offer short-term relief, the constant policy changes make it difficult for businesses to plan and for investors to position their portfolios effectively.”

Global Market Performance

• FTSE 100 (^FTSE): London’s benchmark index closed 0.1% lower, marking its worst week of 2025.

• European Stocks: Germany’s DAX (^GDAXI) fell 1.7% after factory orders dropped significantly in January, while France’s CAC 40 (^FCHI) declined 1.1%.

• Eurozone Growth: Despite the market pessimism, Eurostat reported that the eurozone economy grew 0.2% in Q4 2023, surpassing earlier estimates of 0.1%.

• STOXX 600 (^STOXX): The pan-European index dropped 0.8%, reflecting broader market unease.

Wall Street’s Mixed Session

In the US, the Dow Jones Industrial Average (^DJI) hovered near the flatline, while the S&P 500 (^GSPC) remained largely unchanged, heading for a weekly loss of over 3%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%, recovering slightly after entering correction territory earlier in the week.

Wall Street’s fear gauge, the CBOE Volatility Index (^VIX), closed at its highest level since December 18, signaling heightened investor anxiety.

Currency Movements

• Pound Sterling (GBP/USD): The pound rose 0.3% against the US dollar, trading at 1.2922.

• Euro (EUR/USD): The euro surged 4.6% against the dollar this week, marking its best performance since the financial crisis 16 years ago. The single currency climbed from 1.0375to1.0375to1.086, driven by improved eurozone economic data.

Key Takeaways for Investors

1. US Jobs Data: While job growth improved slightly, the rise in unemployment and mixed signals from the labor market have left traders cautious.
2. Trade War Uncertainty: Trump’s unpredictable tariff policies continue to create volatility, making it difficult for businesses and investors to plan ahead.
3. Global Market Sentiment: European markets struggled despite positive economic data, highlighting the impact of broader geopolitical and trade-related concerns.
4. Currency Trends: The euro’s strong performance underscores improving confidence in the eurozone economy, while the pound remains resilient amid Brexit-related developments.