London Stocks Seen Lower; Investors on Edge Ahead of US Jobs Data
October 07 2022 - 3:07AM
Dow Jones News
London Stocks Seen Opening Slightly Lower Ahead of US Jobs
Data
0550 GMT - The FTSE 100 index is expected to open around 12
points lower, according to IG, having closed on Thursday at
6997.27, as markets await U.S. jobs data and remain cautious that
the U.S. Federal Reserve may not be ready to slow or pause rate
increases. "Today's highlight will be the U.S. jobs report.
Consensus is looking for some easing in employment growth...but
given the strength of the recent leading indicators, we continue to
see modest upside risks to this," Danske Bank analysts say in a
note. Fed officials on Thursday all indicated they were "some time
away from pausing rate hikes," the analysts add. U.S. non-farm
payrolls are expected to rise 275,000 in September, after a 315,000
rise the previous month, according to a WSJ poll.
(jessica.fleetham@wsj.com)
Companies News:
J.D. Wetherspoon Swung to Pretax Profit in FY 2022 as Pandemic
Restrictions Eased
J.D. Wetherspoon PLC reported a swing to pretax profit in fiscal
2022, driven by easier comparatives after the ease of Covid-19
restrictions, and said that its outlook is cautiously
optimistic.
---
Castings Sees Strong Demand in 1H; Expects to Meet Market
Views
Castings PLC said Friday that underlying demand in the first
half of fiscal 2023 remained strong, and that it is confident it
will continue to meet market views.
---
PureTech Health in Takeover Discussions With Nektar
Therapeutics
PureTech Health PLC said Friday that it is in takeover
discussions with Nektar Therapeutics, speaking in response to press
speculation.
Market Talk:
BOE Keeps Feet on Brake In Temporary Long-End Gilt Purchases
0625 GMT - As the Bank of England has bought a "pitiful" amount
of U.K. government bonds, or gilts, of around GBP4 billion, "the
strategy is clearly to send the message that the outlined amount is
only for extreme circumstances," Mizuho's rates strategist Peter
McCallum and rates strategy analyst Evelyne Gomez-Liechti write in
a note. The strategists are of the view, however, that this policy
"makes extreme circumstances more likely" and they also see gilt
yields moving upward. "Alongside LDI [liquidity-driven investment]
deleveraging, factors implying that UK rates will remain high, if
not higher include: more Gilt supply, active QT approaching, and
rising underlying inflation pressures," Mizuho's strategists write
in a note. (emese.bartha@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 07, 2022 02:52 ET (06:52 GMT)
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