Stocks jump with US employment

Friday was a good day for stocks, the S&P 500 gaining 1.5 percent as investors responded to some strong economic data from the US.

US nonfarm payrolls increased by 243,000 in January, the fastest pace in nine months, pushing the unemployment rate down to 8.3 percent, the lowest since February 2009, from 8.5 percent in December.

Providing further evidence of a strengthening economy, the Institute for Supply Management’s non-manufacturing index rose to 56.8 in January from 53 in December.

And in manufacturing, US factory orders rose 1.1 percent in December after an upwardly-revised 2.2 percent gain in November.

Economic data from the euro area on Friday were not as positive, with retail sales falling 0.4 percent in December.

However, there was indication of improvement in the economy in January. Markit's composite index for the euro area rose to 50.4 from 48.3 in December after the services index rose to 50.4 from 48.8.

Meanwhile, the UK services sector also improved in January. The Markit/CIPS services PMI rose to 56.0, the highest in ten months, from 54.0 in December.