The FTSE 100 looks set to open little changed this morning, in the absence of a lead from the US, and with investors awaiting the monthly non-farm payrolls report stateside later in the day. In Footsie company news, The Times reports that the Competition and Markets Authority has censured Barclays (LON:BARC) after the bank admitted it had broken rules designed to make it easier for small and medium-sized companies to switch banks
Muted start ahead
IG’s opening calls suggest that the Footsie will start trading 0.01 percent higher at 7,604 points this morning. In Asia, shares have been little changed in anticipation of the US jobs report.
“A number in line with expectations is unlikely to deter market expectations for a Fed funds rate cut at the end of July,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a note, as quoted by CNBC. Reuters meanwhile quoted Tapas Strickland, London-based markets strategist at National Australia Bank, as commenting that a “weaker-than-expected read would increase expectations of an emergency 50 basis points rate cut in July given that two soft payrolls are very rare with the last being back in 2012,” while a better-than-expected print “would likely see markets pare expectations of a July rate cut, though given the deterioration in other domestic data as well as international PMIs, a July rate cut of 25 basis points remains highly likely”.
In the UK, the Footsie closed little changed yesterday, giving up 5.74 points to end trading 0.08 percent lower at 7,603.58, with little happening on the macroeconomic front. US markets meanwhile were closed for Independence Day.
There are no major macroeconomic releases out of Europe due out this morning. In the US, the highly-anticipated non-farm payrolls report for June is due out at 13:30 BST. IG reports that the world’s biggest economy is expected to have added 165,000 new jobs last month, from 75,000 in May, while the unemployment rate is forecast to have held steady at 3.6 percent.