London open: Stocks edge lower ahead of payrolls

(Sharecast News) - London stocks edged lower in early trade on Friday, taking their cue from a downbeat session on Wall Street, amid concerns about surging inflation and rate hikes. At 0830 BST, the FTSE 100 was down 0.4% at 7,476.14, with all eyes on the release of the latest US non-farm payrolls report.

Oanda analyst Jeffrey Halley said: "Market expectations are for around 400,000 jobs to be added, roughly the same as March, with unemployment edging lower to 3.50%. A sharp divergence, up or down, from the median forecast, should produce a very binary outcome given the schizophrenic nature of the short-term financial markets at the moment.

"A print north of 500,000 should provoke a faster tightening by the Fed possible recession equals selling equities, bonds, gold, cryptos, DM and EM FX, buy US dollars reaction.

"Conversely, a print under 300,000 should see a sigh of relief less Fed tightening rally. Buy equities, bonds, gold, cryptos, DM and EM currencies and sell US dollars. It's that sort of market."

On home shores, the latest construction PMI is due at 0930 BST.

In equity markets, BA and Iberia owner IAG slid despite saying it expects to turn profitable from the second quarter as it reported narrower losses in the first three months of the year as passenger demand continued to recover from the Covid pandemic.

InterContinental Hotels was also in the red even as it reported a 61% jump in first-quarter group revenue per available room and said it had attained 82% of 2019's level.

Promotional merchandise distributor 4imprint rallied after saying it expects annual operating profit to be above forecasts as revenue is on track to hit a better-than-expected £1bn.

Insurer Beazley was trading up as it said that 2022 had "started well", with both gross premiums written and premium rates on renewal business increasing in the first quarter.

Outside the FTSE 350, shares of convenience store chain McColl's tumbled after it said late on Thursday that it was increasingly likely to call in administrators as it continued to talk to lenders about a rescue deal.

Market Movers

FTSE 100 (UKX) 7,476.14 -0.36% FTSE 250 (MCX) 20,005.04 -0.42% techMARK (TASX) 4,349.64 -0.41%

FTSE 100 - Risers

Admiral Group (ADM) 2,359.00p 1.64% BP (BP.) 424.60p 1.36% BAE Systems (BA.) 767.40p 0.97% Avast (AVST) 528.00p 0.92% Shell (SHEL) 2,304.50p 0.50% Endeavour Mining (EDV) 2,032.00p 0.49% Reckitt Benckiser Group (RKT) 6,392.00p 0.47% Meggitt (MGGT) 779.00p 0.26% London Stock Exchange Group (LSEG) 7,476.00p 0.24% Tesco (TSCO) 272.20p 0.18%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 135.28p -5.61% Entain (ENT) 1,363.00p -3.02% Ocado Group (OCDO) 806.20p -2.87% Aveva Group (AVV) 2,245.00p -2.14% Rolls-Royce Holdings (RR.) 80.23p -1.85% Melrose Industries (MRO) 114.10p -1.81% SEGRO (SGRO) 1,167.50p -1.68% Smurfit Kappa Group (CDI) (SKG) 3,343.00p -1.68% Flutter Entertainment (CDI) (FLTR) 8,366.00p -1.58% Burberry Group (BRBY) 1,519.00p -1.52%

FTSE 250 - Risers

4Imprint Group (FOUR) 2,580.00p 5.74% Hiscox Limited (DI) (HSX) 917.40p 4.85% Baltic Classifieds Group (BCG) 132.80p 4.24% Beazley (BEZ) 422.40p 3.94% Trainline (TRN) 312.50p 2.90% Direct Line Insurance Group (DLG) 234.30p 1.25% Tullow Oil (TLW) 57.55p 1.23% Vivo Energy (VVO) 148.20p 1.23% Smithson Investment Trust (SSON) 1,373.00p 1.10% Apax Global Alpha Limited (APAX) 193.00p 1.05%

FTSE 250 - Fallers

Network International Holdings (NETW) 228.60p -5.77% Darktrace (DARK) 416.40p -4.78% Wizz Air Holdings (WIZZ) 2,891.00p -3.47% Ferrexpo (FXPO) 156.10p -3.34% Centrica (CNA) 77.82p -2.87% Virgin Money UK (VMUK) 155.35p -2.72% Rathbone Group (RAT) 2,020.00p -2.65% Fidelity China Special Situations (FCSS) 237.00p -2.47% easyJet (EZJ) 505.80p -2.32% Ibstock (IBST) 180.40p -2.22%