London pre-open: Stocks seen flat ahead of non-farm payrolls
London stocks were set for a muted open on Friday as investors eyed the release of the latest US non-farm payrolls report.
The FTSE 100 was called to open flat at 7,603.
CMC Markets analyst Michael Hewson said: "Today’s US payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points. Currently market pricing is at a 100% certainty that we will get some form of move from the FOMC when they meet at the end of this month, despite data that while by and large is a little softer, isn’t screaming economic slowdown."
The payrolls report is due at 1330 BST, along with the unemployment rate and average earnings.
The payrolls are expected to show a 160,000 increase in June, compared to a 75,000 jump the month before, while average hourly earnings are expected to have edged up 3.2% versus 3.1% in May and the unemployment rate is forecast to be unchanged at 3.6%.
In corporate news, weak construction markets in the UK and Ireland have led to a 3.8% fall in first half like-for-like sales at building materials supplier SIG.
The company, which supplies insulation, energy management and roofing products, said there had been a “marked deterioration” in UK building activity. British and Irish LFL sales fell 12.7%.
James Fisher and Sons has recruited Eoghan O'Lionaird from Spectris as the marine services company's next chief executive.
O'Lionaird will join James Fisher's board on 1 September and replace Nick Henry as CEO on 1 October.
Ferrexpo reported an 11% increase in second quarter iron pellet production, returning to production growth following a 2% drop in the previous quarter.
The Ukrainian pellet producer added that it expected first-half sales volumes to have increased by 4%, while average prices received jumped by 29% compared to the 2018 average due to stronger iron ore prices and premiums for iron ore pellets.