(Alliance News) - London stocks are expected in the red on Friday, as tensions remain high across the Middle East with oil prices surging, and traders wait nervously for key US nonfarm payrolls data due this afternoon.
"Today's jobs data will be very important in providing a final conclusion to the week's so far stronger-than-expected US jobs figures," commented Swissquote's Ipek Ozkardeskaya. "The US economy is expected to have added near 147,000 new nonfarm jobs in September, the unemployment rate may have steadied near 4.2% and wages may have grown slightly slower than they did last month, but still by 3.8% on a yearly basis.
"A set of soft jobs report from the US has the potential to fuel the doveish Fed expectations, weigh on the US yields, the dollar and perhaps keep appetite in equities robust. A stronger-than-expected set of figures, on the other hand, should bring the Fed doves back on earth, lead to a further rebound in the US yields and the dollar and probably weigh on equity investors' appetite."
European market observers also have their eye on construction purchasing managers' data from the UK, eurozone, and several European countries.
In company news, Frasers subscribed for 4.0 million shares in Mulberry, and JD Wetherspoon declared a 12.00 pence final dividend despite annual profit falling.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 12.6 points, 0.2%, at at 8,269.92
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Hang Seng: up 2.1% at 22,574.65
Nikkei 225: closed up 0.2% at 38,635.62
S&P/ASX 200: closed down 0.7% at 8,150.00
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DJIA: closed down 184.93 points, 0.4%, at 42,011.59
S&P 500: closed 9.60 points, 0.2% at 5,699.94
Nasdaq Composite: closed down 6.65 points, less than 0.1%, at 17,918.48.
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EUR: up at USD1.1034 (USD1.1013)
GBP: up at USD1.3149 (USD1.3110)
USD: up at JPY146.08 (JPY146.72)
Gold: up at USD2,665.45 per ounce (USD2,651.03)
(Brent): up at USD77.50 a barrel (USD76.56)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
08:30 BST Germany construction PMI
08:30 BST eurozone construction PMI
08:55 BST UK Bank of England Chief Economist Huw Pill speaks
09:00 BST UK new car sales
09:30 BST UK construction PMI
10:00 BST Germany new car registrations
11:00 BST eurozone European Central Bank vice-president Luis de Guindos speaks
14:10 BST eurozone European Central Bank executive board member Frank Elderson speaks
13:30 BST US unemployment
13:30 BST US nonfarm payrolls
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Japan's new Prime Minister Shigeru Ishiba warned in his first policy speech on Friday that "today's Ukraine could be tomorrow's East Asia". "Why did deterrence not work in Ukraine?" Ishiba told parliament. "Combined with the situation in the Middle East, the international community is becoming increasingly divided and confrontational," the 67-year-old former defence minister added. Japan's relations with China have deteriorated in recent years as Beijing asserts its military presence around disputed territories in the region. Ishiba also called Japan's birth rate situation a "quiet emergency", adding that the government will promote measures to support families such as flexible working hours. Ishiba wants to boost incomes through a new monetary stimulus package as well as support for regional governments and low-income households. Within this decade, he said Friday he wants to hike the average national minimum wage to JPY1,500 per hour, up nearly 43% from the current JPY1,050.
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A GBP4 billion project to build an industrial-scale carbon capture, utilisation and storage facility in North East England has been approved by the UK government, PA reports. Work on the Net Zero Teesside project, led by BP and Equinor, is set to start by the end of this year with operations expected to begin in 2027. The proposed power station will generate up to 860 megawatts of low-carbon electricity – enough to power up to 1.3 million UK homes, according to South Tees Development Corp. Also on Friday, PA reports that the government has pledged nearly GBP22 billion in funding to develop projects to capture and store carbon emissions from energy, industry and hydrogen production. It is hoped the funding for two "carbon capture clusters" in Merseyside and Teesside, promised over the next 25 years, will create and support thousands of jobs, draw in private investment and help the UK meet climate goals.
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BROKER RATING CHANGES
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Jefferies cuts SSE to 'hold' (buy) - price target 2,050 pence
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UBS cuts Phoenix Group to 'neutral' (buy) - price target 530 (610) pence
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Jefferies cuts Videndum price target to 425 (450) pence - 'buy'
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COMPANIES - FTSE 100
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Frasers confirmed that it has successfully applied to luxury fashion retailer Mulberry for a subscription to 4.0 million shares at 100 pence each. Frasers said it will consequently hold a 36.9% to 37.3% stake in Mulberry. The range of Frasers' shareholding is based on the outcomes of Mulberry's retail offer, which remains open and pursuant to which up to a further 750,000 shares may be issued to existing shareholders in Mulberry, Frasers said. Mulberry said on Thursday that Frasers subscribed for 4.0 million shares at the 100p fundraising price under clawback provisions major shareholders were entitled to exercise. Mulberry, famous for its handbags, on Tuesday had rejected a Frasers takeover approach, after receiving the backing from its majority shareholder. On Monday, Frasers announced a possible offer that values Mulberry's shares at 130p each, so its entire equity at GBP83 million.
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COMPANIES - FTSE 250
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JD Wetherspoon said financial 2024 revenue increased 5.7% to GBP2.04 billion from GBP1.93 billion the prior year. Pretax profit however fell 33% to GBP60.6 million from GBP90.5 million. Having not paid a dividend for financial 2023, for its latest year the firm declared a final payout of 12.0 pence per share. Going forward, Chair Tim Martin commented that Wetherspoon "currently anticipates a reasonable outcome for the current financial year, subject to our future sales performance".
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OTHER COMPANIES
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Renew Holdings announced its disposal of Walter Lilly & Co to Size Holdings. Renew said the disposal was for a nominal consideration on a cash-free and debt-free basis. Size will assume any ongoing liabilities relating to Walter Lilly, and Renew expects the disposal to enhance group operating margins. "The disposal sees the group exit its only remaining specialist building business and is consistent with the group's strategy of focusing activities on specialist engineering where it targets end markets delivering maintenance and renewals programmes that benefit from long-term, non-discretionary funding programmes," Renew said. "Alongside the recent Excalon acquisition, Renew's strategy has accelerated significantly over 2024 and the group continues to strengthen its position in its long-term growth markets."
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By Emma Curzon, Alliance News reporter
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