ADVFN Logo ADVFN

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

ADVFN Morning London Market Report: Friday 3 February 2017

Share On Facebook
share on Linkedin
Print

London open: Stocks little changed before payrolls; miners hit by China data

© ADVFN

London stocks were little changed in early trade as investors looked to the release of the all-important non-farm payrolls report and digested a surprise tightening of monetary policy by the People’s Bank of China.
At 0825 GMT, the FTSE 100 was up 0.1% to 7,148.03.

Investors were waking up to news that China has unexpectedly lifted short-term interest rates. The PBOC raised reverse repurchase agreements by ten basis points to 2.35%.

Meanwhile, mining stocks took a beating following the release of disappointing manufacturing data out of China. The Caixin manufacturing purchasing managers’ index, a private gauge of factory activity, nudged down to 51.0 in January from 51.9 in December. This remained out of contraction territory for a seventh straight month but was below economists’ forecasts of 51.2.

Looking ahead, the main focus on Friday will be the US non-farm payrolls report and unemployment rate at 1330 GMT.

CMC Markets‘ Michael Hewson said: “We round off the day and the week with expectations high that today’s US employment report will blow the doors off in the same way as Wednesday’s 245k ADP number did. These expectations aren’t unrealistic given that over the last 12 months the ADP and official NFP numbers have only deviated by more than 30k on just two occasions, with an average change of 14k over the last 12 months.

“This would suggest that the 180k estimate being predicted is probably too low, with a figure in excess of 200k not being beyond the realms of possibility. Such a high number given an unemployment rate of 4.7%, would suggest that there is probably still a fair degree of slack in the jobs market. Wages are also likely to be closely watched with a rise of 0.3% expected, with an annualised rise of 2.8%, down slightly from December’s 2.9%.”

Ahead of the US data, investors will eye the release of Markit’s UK services PMI at 0930 GMT.

On the corporate front, residential repair and improvements business HomeServe gained as it said it has acquired shareholdings in Checkatrade in the UK and Habitissimo in Spain. The FTSE 250 company purchased a 40% interest in Checkatrade, and a 70% interest in Habitissimo, with the deals being worth a combined £37m.

Elsewhere, buyout fund Electra Private Equity was in the black as its portfolio manager Epiris said it will sell its Audiotonix business, which manufactures audio mixing consoles, to European private equity firm Astorg.

Insurer Beazley surged after reporting a 3% jump in full-year profit as gross premiums written increased 6% and the company lifted its dividend.

Budget airline Ryanair flew higher as it said traffic in January rose 17% to 8.77m, while the load factor – which gauges how full the planes are – nudged up to 90% form 88%.

Halma was a high riser after Barclays upgraded its stance on the stock to ‘overweight’ from ‘equalweight’.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com