London pre-open: Stocks to rise as investors eye non-farm payrolls

London stocks were set to rise at the open on Friday following heavy losses the day before, with all eyes on US bond markets as investors await the release of the non-farm payrolls report.

The FTSE 100 was called to open 20 points higher at 7,438.

CMC Markets analyst Michael Hewson said: "This week's break high in US 10-year yields to their highest levels since 2011 could gain further traction if we get a decent US jobs report later today. Having seen the ADP payrolls report post 230,000 new jobs in September, and seeing the latest ISM non-manufacturing survey post a big gain in the employment component, expectations have risen that we could well see a payrolls figure in excess of 200,000, raising the expectations that September could well see the two reports combined post a figure close to 500,000."

Consensus is for 184,000 jobs to have been added, down slightly from 201,000 in August. Market participants will also be eyeing the pace of wage growth, with wages expected to have slipped back to 2.8%.

The payrolls report, unemployment rate and average earnings are due at 1330 BST.

In UK corporate news, Unilever directors have decided to withdraw their proposal to move out of the UK to a single Netherlands headquarters after growing opposition from shareholders large and small.

Cancelling the planned shareholder votes for the Dutch and UK in Rotterdam and London on 25 October and 26 October, the FTSE 100 colossus bowed to investor pressure, saying it recognised that the proposal "has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw".

Greencoat UK Wind said it was buying Belltown Power's 75% stake in Scotland's Tom nan Clach wind farm for £126m.

The deal includes a share of project finance debt and should be completed in July 2019. Tom nan Clach is located in Nairnshire and is in the final stages of construction, Greencoat said.

Elsewhere, Assura said it has completed a further three acquisitions for a combined consideration of £50m.

This takes its year-to-date spend on additions to £158m, comprising 42 medical centres with a passing rent roll of £7.7m and a weighted average unexpired lease term of 14.2 years.