Equities Indices

FTSE 100 preview: Footsie seen steady ahead of US jobs report

The FTSE 100 looks set to open higher this morning, ahead of the highly-anticipated non-farm payrolls report on the other side of the Atlantic due out later today. In company news, Smiths Group (LON:SMIN) has appointed a chief executive of its Medical division.

FTSE 100 seen higher

IG’s opening calls suggest that the Footsie will start trading 0.20 percent higher at 7,274 points. In the US, shares rose last night amid hopes for a delay of potential tariffs on Mexico threatened by President Donald Trump.

Martha Barcena Coqui, Mexico’s ambassador to the US, told CNBC that negotiators had had “a very good discussion, a very good debate”. Asian shares meanwhile have been trading higher this morning.

In the UK, the Footsie rose in the previous session, gaining 39.63 points to close 0.55 percent higher at 7,259.85, finding support in tobacco stocks. Investors also digested the European Central Bank’s pledge to keep its interest rates unchanged at least through the first half of 2020.

“Instead of taking a rate hike off the table, it’s instead decided to simply push the first hike further out. Head still in the sand. Markets still pricing for a cut before then,” Markets.com analyst Neil Wilson said, as quoted by Reuters.

Friday’s agenda

Today’s macroeconomic releases will start with Germany’s trade balance for April, due out at 07:00 BST. The US non-farm payrolls report for is scheduled to be announced at 13:30 BST. IG reports that the US economy is expected to have added 190,000 new jobs, from 263,000 in April, while the unemployment rate is expected to have climbed to 3.7 percent, from 3.6 percent.

Kevin Cummins, senior US economist at RBS, meanwhile told Reuters that the bank had “not adjusted our projection of 185,000 for overall nonfarm payrolls in May”.

“However, any major surprises in May payrolls seem tilted to the low side of our forecast, which wouldn’t be too surprising given the rising uncertainty in the outlook in the US and the above-trend gain registered in April,” he added.

Rate this post
Total: 0 Average: 0

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.