Market overview: Footsie slips, commodities weak

1630:Close The Footsie was dragged lower by miners as commodity prices were hit by the rising dollar after today´s US jobs reports. Three-month copper futures slipped another 0.9% to end at $4,984.00 per metric tonne on the LME. In parallel, the pound and Gilts took increased rate hike expectations across the Pond on the chin. Fed funds futures were left pricing in a 70% probability of a December rate hike by theFOMC. The second-tier index on the other hand managed a gain of 48.79 points to end at 17,165.92, led by financials. The top risers on both indices, IHG and Tullet Prebon, respectively, were fueled by M&A news-flow. FTSE 100 down 11.07 points or 0.17% to 6,353.83.

1540: "The October Employment Report is strong from virtually every angle, confirming further improvement in labor markets and solid economic growth in 2015Q4, and it provides vital support for a Fed rate increase in December. The very cautious Fed has been looking for economic support to raise rates. This report provides such support. Moreover, the markets’ response to the strong employment report of pricing in a December rate hike reduces any chance that a Fed move will “surprise” markets, another factor the Fed will consider. Finally," says Mickey D.Levy, chief economist, Americas and Asia at Berenberg Capital Markets, in a research report sent to clients.

1500: Shares in National Grid were under pressure after Jefferies downgraded the stock to ‘hold’ from ‘buy’ but lifted the price target to 950p from 900p. It said that following the strong share price performance in recent months the shares are now at fair value. Still, it continues to believe National Grid will outperform against its current regulation in the UK and offer a secure and growing dividend to investors. In parallel, the yield on the benchmark 10-year Gilt was higher by eoght basis points to 2.05% in the wake of today´s US non-far payrolls numbers.

1448: As the US dollar gets pole-vaulted higher by today´s jobs data, commodities and miners are taking it on the chin. For euro/dollar the level to watch on a closing basis is 1.08 (it was off 1.44% to 1.0727 at the time of writing) and then 1.05. It may be interesting to see the interplay between Fed hike expectations and strength in the Greenback in coming weeks. To take note of, "a high dollar increases importing burden of emerging markets - the biggest consumers of base metals. Copper the biggest loser," Digital Look´s Gaurav Sharma points out. The level to watch on cable is 1.5070, the bottom part of the down-trend which has been in place since mid-July. FTSE 100 up 16.34 to 6,381.24.

1330: US non-farm payrolls grew by in 271,000 in Octobe, according to the Bureau of Labour Statistics. The consensus forecast had been for a gain of 180,000. "Based on better-than-­expected labor market data this week, we have revised up our forecast for October nonfarm payroll growth to 190k from 175k previously. Labor market indicators were mixed in October, with the employment components of service sector surveys generally stronger and manufacturing sector surveys generally weaker. In addition, the Help Wanted Online index improved in October and warmer-than-average temperatures were favorable for job growth," Goldman Sachs said in a report sent to clients before the release. The yield on the benchmark two-year US Treasury note jumped by nine basis points to 0.92%.

1328: Intercontinental Hotels Group is up almost 5% as rumours mount that it is exploring strategic options including a potential sale or merger, according to Bloomberg reports. The Holiday Inn owner is discussing with its advisers whether to sell itself or combine with a competitor, sources said.

1129: CRH has risen to the top of the leaderboard following an upgrade of the construction sector by UBS to 'overweight'.

1009: Burberry is lower after Swiss rival Richemont´s poor results.

0943: Tullett Prebon confirms earlier reports they are in talks with Icap.

0931: Britain´s visible trade deficit worsened to -9.35bn pounds in September after a print of 10.8bn pounds in the month before (consensus: -10.8bn pounds).

0930: UK industrial production rose by 1.1% year-on-year in September (consensus: 1.3%) after a slightly downwardly revised gain of 1.8% in the month before. Manufacturing output slipped 0.6% year-on-year (consensus: 0.7%).

0851: The top flight index was slightly ahead in early trading led by gains in CRH and IAG, with the latter having upgraded its long-term targets on Friday morning. Inmarsat also registered a gain on the back of its third quarter figures. Miners were also gettiing a bid with BHP the lone man out after a tailings dam at a mine part-owned by it burst, killing 15 persons and about 50 more missing. Amec Foster Wheeler was at the bottom of the pile on the second-tier index on follow-through selling from the previous session. FTSE 100 up1.51 points to 6,366.81.