FTSE 100 preview: Index looking up ahead of US jobs report

on Sep 2, 2016

The UK benchmark index looks set to open higher this morning, shrugging off lacklustre leads from the US and Asia. The FTSE 100 is seen steady ahead of the highly-anticipated US non-farm payrolls report this afternoon which will come ahead of the Federal Reserve’s policy meeting later this month.

IG’s opening calls suggest that the Footsie will start the session 14 points higher at 6,760. US stocks closed little changed last night, amid investor caution ahead of the jobs report, and following downbeat manufacturing data.
“Of all these wait-and-see weeks we’ve had […] this is the most imperative,” Art Hogan, chief market strategist at Wunderlich Securities, told CNBC. “I don’t expect any players to make any big decisions in front of the report.” In Asia, stocks have slipped lower this morning.
“There is therefore potential for markets to whipsaw should we see robust US jobs data tonight, going into the US Labour Day holiday weekend,” Sharon Zellner, a senior strategist at ANZ, said, as quoted by Reuters.
At home, the Footsie started September on the back foot, shedding 35.54 points to end the session 0.52 percent lower at 6,745.97, pressured by a drop in energy shares which tracked oil lower.
Today’s macroeconomic releases include the UK construction purchasing managers’ index for August due out at 09:30 BST. The main event is the US non-farm payrolls report, scheduled to be released at 13:30 BST. IG reports that job creation in the world’s biggest economy is expected to have dropped to 164,000 last month, following a bumper 255,000 in July, while the unemployment rate is expected to have slipped from 4.9 percent to 4.8 percent. No blue-chip companies are scheduled to update investors on their recent performance this morning.

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