FTSE 100 preview: Index to build on gains ahead of US jobs report

on Nov 3, 2017

The UK benchmark index looks set to open higher this morning, extending the previous session’s gains, with sentiment remaining upbeat ahead of the US non-farm payrolls report later in the day. Tesco (LON:TSCO) will be in focus today amid an ongoing trial of three former executives in relation to the group’s 2014 profit overstatement.

Upbeat start on the cards

IG’s opening calls suggest that the Footsie will start today’s session 0.21 percent higher at 7,571 points. In the US, stocks closed higher last night, boosted by the release of a tax-reform plan proposed by Republicans.

“People are building their frameworks, but no one knows where this is going to go,” said Jeremy Bryan, portfolio manager at Gradient Investments, as quoted by CNBC. Asian shares meanwhile have been mixed this morning.

At home, the Footsie added 67.36 points to close 0.90 percent higher at 7,555.32, with investors digesting the Bank of England’s move to hike interest rates for the first time in a decade, as well as a more-dovish-than-expected monetary policy statement.

Non-farm payrolls report ahead

Today’s macroeconomic releases include the UK services purchasing managers’ index for October, due out at 09:30 GMT. The US jobs report is scheduled to be released at 12:30 GMT and IG reports that non-farm payrolls are expected to have risen to 250,000 last month, following last month’s 33,000-drop.

Artificial hips and knees maker Smith & Nephew (LON:SN) is the only blue-chip company scheduled to update the market on its recent performance this morning. In other news, The Times reported that Tesco’s boss had told court that he had been ‘surprised’ and ‘shocked’ to be told only 19 days after starting his new job that the grocer had misstated its profit forecast by nearly £250 million.