FTSE 100 preview: Index looking up in wake of jobs report

Britain’s blue-chip index looks set to open higher this morning, taking cues from the US and Asia, where sentiment has been upbeat in the wake of the stronger-than-expected US jobs report. Barclays (LON:BARC) will be in focus on the corporate front today amid prospects of fresh charges over its fund raising during the financial crisis.

IG’s opening calls suggest that the FTSE 100 is scheduled to start the day 0.43 percent higher at 7,383 points. In the US, sentiment was upbeat on Friday after the nation’s payrolls report surpassed analyst expectations, with 222,000 new jobs added last month. Asia meanwhile has tracked the US higher this morning.
“Strong headline growth, amid poor wage growth, is seemingly a perfect storm for equities,” Chris Weston, chief market strategist at IG in Melbourne, said in a note, as quoted by Reuters. “Looking ahead, traders will continue to watch fixed income like a hawk for further knock-on effects into foreign exchange and equities,” particularly with speeches by Fed Chair Janet Yellen and Governor Lael Brainard due this week.

Stronger oil is also likely to help market sentiment today, with crude prices recovering some of the ground lost last week.
The Footsie closed little changed on Friday, adding 13.64 points to end the session 0.19 percent higher at 7,350.92, as investors digested the jobs report.
Today’s macroeconomic releases include Germany’s trade balance for May, due out at 07:00 BST. There are no blue-chips scheduled to update investors on their recent performance this morning. In other news, the Financial Times reports that Barclays is set to hear within a fortnight whether it will face a second set of criminal fraud charges over its emergency 2008 cash call when it turned to Qatari investors to avoid a state-funded bailout.