Friday preview: October US jobs report critical for Fed hike expectations

All eyes will be on the US non-farm payrolls report on Friday as investors look for clues on the timing of the next rate hike, particularly after Federal Reserve Chairwoman Janet Yellen’s hawkish comments on Wednesday.

Yellen said before the House financial services committee that the US economy was performing well and a rate hike next month was still a “live possibility”.

"The committee does feel that moving in a timely fashion if the data and outlook justify such a move is a prudent thing to do because we will be able to move at a more gradual and measured pace," Yellen said.

Societe Generale said the US employment report this week will be critical in shaping market expectations of the December FOMC meeting.

Ironically, the October US jobs report will come close on the heels of a dovish MPC meeting and minutes which dashed many a traders hopes that Carney&Co. might be looking to prod markets into pricing in an earlier start to policy tightening.

“The average non-farm payroll gain in the previous six reports was 199,000, and in the past twelve reports was 229,000. The current consensus expectation for the October non-farm payrolls is 180,000 with the unemployment rate at 5.1%.

“A report with a headline number around 200K is likely to raise market pricing of a December rate hike, and pave the way to a further dollar advance, the bank said.

Industrial production figures are also set for release in the UK and Germany. ONS will also publish its data on visible trade at 09:30.

Company-wise there is little on the calendar save a trading update from Intu Properties and the latest traffic stats out of IAG.

Friday 06 November

INTERIM DIVIDEND PAYMENT DATE
Bodycote, Charlemagne Capital Ltd., Cobham, CRH, F&C Private Equity Trust, Huntsworth, Inspired Energy, Johnson Service Group, Judges Scientific, OneSavings Bank, Rightmove, SIG, Spirax-Sarco Engineering, Unite Group, Weir Group

QUARTERLY PAYMENT DATE
British Land Company, Investors Capital Trust 'A' Shares

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Industrial Production (GER) (11:00)
Non-Farm Payrolls (US) (13:30)
Unemployment Rate (US) (13:30)

Q3
Bankers Petroleum Ltd.(CDI), Inmarsat, OJSC Magnitogorsk Iron & Steel Works GDR (Reg S)

EGMS
Jubilant Energy

AGMS
Jupiter Energy Ltd, Pacific Horizon Inv Trust, Revolution Bars Group

TRADING ANNOUNCEMENTS
Intu Properties

UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
Industrial Production (09:30)
Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE
Begbies Traynor Group, Clinigen Group, Edge Performance VCT 'I' Shares, Edge Performance VCT G Shares, Mid Wynd International Inv Trust, Schroder Japan Growth Fund, WYG