London pre-open: Stocks to nudge up ahead of payrolls

(Sharecast News) - London stocks were set to nudge higher at the open on Friday as investors eyed the latest US non-farm payrolls report. The FTSE 100 was called to open around five points higher.

The payrolls report is due at 1330 GMT, along with the unemployment rate and average earnings.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Due today, the US jobs numbers could further boost the dovish enthusiasm...or not. Note that the last two readings were abnormally strong with NFP reads above 300K mark. The latter interrupted the downtrend in US payrolls - a downtrend that was in play following the post-pandemic peak.

"But on the other hand, other metrics - like lower job openings and lower quit rates - hint that there is a normalization and a certain loosening in the US jobs market. The quit rates for example fell below the pre-pandemic average hinting that the Great Resignation era is leaving its place to Great Stay and that means a possible downward pressure on wages growth."

She said the US economy is expected to have added around 200,000 jobs last month, and the monthly average pay may have increased at a slower speed. The unemployment rate is seen steady at 3.7%.

"If the data is sufficiently soft - or ideally softer than expected, the Fed doves will finish the week on a dominant note. But if we see another month of blowout jobs report, confusion will reign.

"But in all cases, what matters the most is inflation. Even if the US jobs data comes in hot, if next week's US CPI read is soft enough, investors will continue to daydream about that first rate cut. Oh that first rate cut..."

In corporate news, Frasers Group responded to media speculation over its Matches brand, confirming its closure after just two months of ownership.

The retail conglomerate said that despite its support, Matches had consistently missed business targets and incurred significant losses since its acquisition.

Due to unsustainable funding needs and the extent of restructuring required, it said the directors of Matches had opted to place the group into administration, while Frasers said it remained committed to its luxury market presence and brand partnerships.

Informa upped 2024 guidance after strong growth in overseas markets boosted full-year revenues and profits.

The specialist B2B events organiser and publisher saw revenues jump 41% in the year to December end to £3.19bn, while adjusted operating profit was £853.8m, compared to £496.3m a year previously.

Pre-tax profits surged £492.1m from £168.8m.

Informa attributed much of the growth to strong demand in overseas markets, including India, the Middle East and Africa.

Currys said Greek regulators had approved the sale of its Greece and Cyprus retail business Kotsovolos to Public Power Corporation for an enterprise value of €200m (£175m).

The UK electrical retailer said it expected to get around £156m net from the deal and use the cash to pay down debt.