London pre-open: Stocks to nudge down ahead of payrolls

(Sharecast News) - London stocks were set to nudge lower at the open on Friday amid escalating tensions in the Middle East and as investors eyed the latest US non-farm payrolls report. The FTSE 100 was called to open around five points lower.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "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. The US economy is expected to have added near 147K 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 dovish 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."

The payrolls report for September is due at 1330 BST, along with the unemployment rate and average earnings.

On the UK macro front, the S&P Global/CIPS construction PMI for September is scheduled for release at 0930 BST.

In corporate news, JD Wetherspoon reported a 5.7% increase in full-year revenue to £2.04bn, with a 73.5% rise in profit before tax to £73.9m before separately disclosed items.

Despite strong growth in operating profit and like-for-like sales, the FTSE 250 pub operator said free cash inflow per share fell by 87.5%, and after separately disclosed items, profit before tax dropped by 33%.

Chairman Tim Martin said he was still concerned about potential future lockdowns, despite the last one being lifted in 2021, and questioned the effectiveness of the UK government's ongoing Covid-19 inquiry, but said sales continued to improve in the new financial year.

Watches of Switzerland said it had bought Hodinkee, a specialist website for luxury watch enthusiasts, for an undisclosed sum.

The company said the deal was part of its plan to leverage growth opportunities and grab market share, "particularly in the fast growing US market".

Headquartered in New York and founded in 2008, Hodinkee offers digital print and video content, limited edition watch collaborations alongside watch and jewellery insurance services. It has an audience of 22.2 million annual unique visitors to its website with more than one million social media followers, WoS said.