UKX FTSE 100 Index

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.

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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.

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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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