US employment rose last month by the largest amount since May, according to the government's latest non-farm payroll statistics.
The widely watched data showed a 216,000 rise in March - compared to estimates of between 175,000 and 200,000 - and the unemployment rate fell to a two year low 8.8%, ahead of forecasts of 8.9%. The figures follow a 199,000 rise in February - revised upwards by 7,000 - and give a strong indication the US economy is back on track. It also tallies with more hawkish comments coming out of the US Federal Reserve, with suggestions its quantitative easing programme could end in April and talk of a 75 basis point hike in interest rates later in the year.
The news has given more support to the FTSE 100, which is now up 65.06 points at 5973.82, while US futures are indicating a strong 66 point opening on Wall Street. Rob Carnell at ING Bank said:
Today's data will give markets further reason to consider an earlier Fed rate hike than was being priced in (March 2012) prior to the release, with the continuing fall in the unemployment rate being a key consideration.
