London pre-open: Stocks seen down ahead of payrolls

(Sharecast News) - London stocks were set to fall at the open on Friday as investors mulled the latest UK house price data and looked ahead to the release of the all-important US non-farm payrolls report. The FTSE 100 was called to open around 10 points lower.

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

Danske Bank said: "We expect non-farm payrolls growth to recover to 160k (cons: 200k, prior: 12k) after temporary weather-related effects have reversed.

"We anticipate average hourly earnings growth moderated to +0.2% m/m SA and unemployment rate remaining steady at 4.1%."

On home shores, figures released earlier by Halifax showed that house prices rose 1.3% on the month in November to hit a record high of £298,083. This followed a 0.4% jump in October.

On the year, prices were up 4.8% in November following 4% growth the month before.

Amanda Bryden, head of mortgages at Halifax, said: "Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.

"As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago."

In corporate news, Direct Line said it had accepted a takeover offer from rival Aviva after the latter increased its bid to 275 a share.

The company reiterated that it was confident of its prospects as a standalone operation, but after considering the new offer with advisers and consulting with shareholders it decided the latest bid was at a value that it could recommend acceptance.

Aviva has until 1700 GMT on Christmas Day to make a firm offer under UK takeover rules.

Berkeley Group reported a 7.7% decline in half-year pre-tax profit to £275.1m, with resilient sales prices and stable build costs despite broader macroeconomic risks.

The FTSE 100 housebuilder launched its 'Berkeley 2035' strategy to enhance capital flexibility, as it remained on track to meet its profit guidance while delivering £283m in shareholder returns by September next year.

Net cash as at 31 October stood at £474m, down from £531m at the end of April, while Berkeley's net asset value per share improved by 84p over the same period to 3,447p.