London open: Stocks edge up ahead of payrolls; housebuilders slump

(Sharecast News) - London stocks edged up in early trade on Friday following heavy losses in the previous session, as investors eyed the latest US non-farm payrolls report. At 0825 BST, the FTSE 100 was up 0.3% at 7,167.55, having closed down 1.9% on Thursday as recession fears rattled markets.

Richard Hunter, head of markets at Interactive Investor, said: "The next challenge comes later today in the form of the highly anticipated non-farm payrolls report. Unfortunately, the release could leave investors in something of a no-win situation given current sentiment.

"If the number strongly exceeds the expectation of 300,000 jobs being added, as was the case last month, aggressive tightening will continue with an economy still able to withstand rate pressures. If on the other hand the number is weak, recessionary concerns will inevitably surface, with the likelihood that lower valuations will need to be factored into share prices."

The non-farm payrolls report for August is due at 1330 BST, along with the unemployment rate and average earnings.

In equity markets, housebuilders were under the cosh after a raft of downgrades in the sector. HSBC cut Barratt Developments, Bellway, Persimmon, Crest Nicholson, Redrow and Taylor Wimpey to 'hold', while Berkeley was downgraded to 'reduce'.

Asset manager Ashmore nudged down as it said that assets under management and earnings slipped in the 12 months ended 30 June as Russia's invasion of Ukraine and inflationary concerns led to widespread risk aversion.

Avast ticked a touch higher after the Competition and Markets Authority cleared NortonLifeLock's $8.6bn takeover of the London-listed cybersecurity software developer.

Shell was also in focus following a report it has shortlisted four candidates to succeed chief executive Ben van Beurden, who is preparing to step down next year after nearly a decade at the helm of the energy firm.

Reuters cited two company sources as saying that Shell's board succession committee - headed by Chairman Andrew Mackenzie - has met several times in recent months to draw up plans for van Beurden's departure and interview potential successors.

Market Movers

FTSE 100 (UKX) 7,167.55 0.27% FTSE 250 (MCX) 18,581.07 0.47% techMARK (TASX) 4,223.91 0.29%

FTSE 100 - Risers

Smith & Nephew (SN.) 1,048.00p 3.10% Scottish Mortgage Inv Trust (SMT) 786.60p 2.26% JD Sports Fashion (JD.) 116.35p 1.70% International Consolidated Airlines Group SA (CDI) (IAG) 106.22p 1.59% Reckitt Benckiser Group (RKT) 6,404.00p 1.59% Dechra Pharmaceuticals (DPH) 3,444.00p 1.35% Abrdn (ABDN) 143.35p 1.27% Smurfit Kappa Group (CDI) (SKG) 2,868.00p 1.24% Prudential (PRU) 892.20p 1.20% Flutter Entertainment (CDI) (FLTR) 10,400.00p 1.17%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 3,430.00p -4.43% Barratt Developments (BDEV) 399.30p -3.83% Persimmon (PSN) 1,432.50p -2.55% Taylor Wimpey (TW.) 103.20p -1.71% Rio Tinto (RIO) 4,556.50p -1.11% Anglo American (AAL) 2,648.50p -1.10% Glencore (GLEN) 437.90p -0.93% Antofagasta (ANTO) 1,042.00p -0.76% BAE Systems (BA.) 755.40p -0.74% Bunzl (BNZL) 2,772.00p -0.72%

FTSE 250 - Risers

Bridgepoint Group (Reg S) (BPT) 250.80p 5.82% Pets at Home Group (PETS) 320.20p 4.98% Carnival (CCL) 712.40p 4.46% 888 Holdings (DI) (888) 123.10p 3.45% 4Imprint Group (FOUR) 3,780.00p 3.42% Genus (GNS) 2,454.00p 3.37% Hammerson (HMSO) 21.17p 2.92% Trainline (TRN) 331.60p 2.50% Wizz Air Holdings (WIZZ) 2,088.00p 2.35% TUI AG Reg Shs (DI) (TUI) 127.20p 1.92%

FTSE 250 - Fallers

Redrow (RDW) 472.00p -3.79% Bellway (BWY) 1,921.00p -3.10% Darktrace (DARK) 492.60p -2.22% Crest Nicholson Holdings (CRST) 217.80p -2.16% Countryside Partnerships (CSP) 225.00p -1.75% Wood Group (John) (WG.) 125.65p -1.68% Babcock International Group (BAB) 313.00p -1.07% Vistry Group (VTY) 733.50p -1.01% Cranswick (CWK) 3,000.00p -0.73% Playtech (PTEC) 431.20p -0.69%