Friday preview: US non-farm payrolls in focus

US jobs data will take centre stage on Friday as the Federal Reserve looks for signs of further recovery in the labour market as it schedules its next interest rate rise.

The non-farm payrolls (NFP) report is expected to show US employers added 200,000 jobs in December, compared to 211,000 in November, while the unemployment rate is forecast to remain at 5%.

Analysts predict average hourly earnings will have risen 2.8% in the year to December following a 2.3% increase a month before.

“Many services industries are adding jobs at a healthy pace,” HSBC observed.

“Construction employment has also been growing solidly, reflecting a pick-up in both residential homebuilding and public sector construction this year.”

However, other sectors of the economy are not performing as strongly, including manufacturing industries which have been hurt by sluggish global growth and a strong US dollar, while the energy sector has also shed jobs to cope with the oil price slump.

Friday’s figures follows the ADP’s private payroll report on Wednesday which showed employers added 257,000 jobs in December, beating forecasts of 198,000, after the prior month’s 211,000.

The Fed last month decided to raise interest rates for the first time in nearly a decade, as the labour market and economy improved. The central bank looks set to increase rates further this year, provided the recovery continues.

Friday 08 January

INTERIM DIVIDEND PAYMENT DATE

Atkins (WS), Brown (N.) Group, Caffyns, Creston, Cropper (James), Homeserve, JD Sports Fashion, Kainos Group , Marks & Spencer Group, Montanaro European Smaller Companies Trust, Pets at Home Group , Sepura, Severn Trent, Shanks Group, Telford Homes, TLA Worldwide , VP

QUARTERLY PAYMENT DATE
Schlumberger Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)

Consumer Credit (US) (20:00)

Current Account (GER) (07:00)

Industrial Production (GER) (11:00)

Non-Farm Payrolls (US) (13:30)

Retail Price Index (GER) (07:00)

Retail Sales (GER) (07:00)

Unemployment Rate (US) (13:30)

Wholesales Inventories (US) (15:00)

AGMS
MCB Bank Ltd GDR (Reg S)

TRADING ANNOUNCEMENTS
XP Power Ltd. (DI)

UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)

FINAL DIVIDEND PAYMENT DATE
Associated British Foods, Waterman Group