London midday: Stocks rise after UK construction PMI, before US non-farm payrolls

London stocks gained after data showed UK construction activity improved more than expected in September and before the release of the US non-farm payrolls report.

The headline seasonally-adjusted Markit/CIPS UK purchasing managers’ index climbed from 57.3 in August to 59.9 last month, well above the 57.5 analysts had expected and the long-run survey average of 54.7

Markit said house building remained the best performing category of construction activity in September, as it registered the strongest rate of expansion for 12 months, which some attributed to the launch of development projects that had been delayed earlier in the year.

The main event, however, is the US Labor Department’s non-farm payrolls report which is expected by analysts to show that employers added 202,000 jobs in September, up from the previous month’s 173,000. The unemployment rate is projected to remain at 5.1% in September. Average hourly earnings are forecast to rise 2.4% in September compared to the same month a year ago, following a 2.2% rise in August.

The figures may influence the Federal Reserve ahead of its 27-28 October policy meeting, as the central bank is taking into consideration a wide-range of economic data in determining the best timing for an interest rate hike.

Fed Chair Janet Yellen has said a rate hike is expected by the central bank this year.

“In focus today will, naturally, be the US non-farm payrolls where expectations for addition of 200K should keep the US Jobs market improvement on track,” said Michael van Dulken, analyst at Accendo Markets.

“Any gains in hourly earnings will be welcomed as a potential driver for absent inflation despite prices facing headwinds from a commodity rout linked to years of over-investment and a resultant supply glut.”

In company news, financial services companies and banks were the top risers after the Financial Conduct Authority said it is looking to set a deadline of at least spring 2018 for consumers to lodge complaints about payment protection insurance.

FirstGroup gained after saying overall trading is in line with management’s expectations and its multi-year transformation plans continue to progress, despite a more challenging trading environment in some of the group’s markets.

Paragon Group advanced after buying Five Arrows Leasing Group through its subsidiary Paragon Bank for £117m.

Legal & General jumped after saying it will provide retirement payments under a group annuity contract to 14,000 Royal Philips US retirees and other former employees in its first American pension risk transfer deal.

Experian declined after it was hacked, exposing the private information of T-Mobile customers and potential customers in the US.

Market Movers

techMARK 3,037.13 +0.89%

FTSE 100 6,172.68 +1.65%

FTSE 250 16,891.63 +0.76%

FTSE 100 - Risers

Standard Chartered (STAN) 677.40p +4.57%

Prudential (PRU) 1,442.50p +3.44%

Legal & General Group (LGEN) 244.60p +3.38%

Aviva (AV.) 464.70p +3.34%

Dixons Carphone (DC.) 439.10p +3.22%

Lloyds Banking Group (LLOY) 77.48p +3.00%

Royal Dutch Shell 'A' (RDSA) 1,633.00p +2.90%

BG Group (BG.) 992.00p +2.89%

Standard Life (SL.) 400.70p +2.85%

Old Mutual (OML) 195.80p +2.84%

FTSE 100 - Fallers

Experian (EXPN) 1,027.00p -4.47%

Randgold Resources Ltd. (RRS) 3,869.00p -1.60%

Fresnillo (FRES) 599.50p -0.83%

International Consolidated Airlines Group SA (CDI) (IAG) 578.00p -0.34%

FTSE 250 - Risers

Paragon Group Of Companies (PAG) 433.50p +9.80%

Synergy Health (SYR) 2,265.00p +5.84%

Tullow Oil (TLW) 195.30p +5.34%

Greencore Group (GNC) 293.80p +5.15%

Evraz (EVR) 78.50p +4.32%

Kaz Minerals (KAZ) 92.90p +4.21%

Premier Oil (PMO) 71.35p +3.93%

Zoopla Property Group (WI) (ZPLA) 218.20p +3.90%

Ocado Group (OCDO) 329.30p +3.85%

Ashmore Group (ASHM) 256.70p +3.80%

FTSE 250 - Fallers

CLS Holdings (CLI) 1,847.00p -3.40%

OneSavings Bank (OSB) 369.70p -3.09%

Smith (DS) (SMDS) 371.30p -3.05%

Electrocomponents (ECM) 174.50p -3.00%

Card Factory (CARD) 385.00p -2.75%

NMC Health (NMC) 827.50p -2.65%

Allied Minds (ALM) 361.00p -2.19%

Acacia Mining (ACA) 250.20p -2.07%

Petrofac Ltd. (PFC) 746.50p -1.39%

Saga (SAGA) 202.20p -1.37%

FTSE TechMARK - Risers

SDL (SDL) 355.00p +9.65%

DRS Data & Research Services (DRS) 12.75p +6.25%

Oxford Biomedica (OXB) 8.14p +4.90%

RM (RM.) 172.00p +4.24%

Filtronic (FTC) 6.50p +4.00%

Skyepharma (SKP) 344.25p +2.23%

KCOM Group (KCOM) 90.50p +0.84%

NCC Group (NCC) 277.00p +0.45%

Oxford Instruments (OXIG) 582.00p +0.26%

Sepura (SEPU) 175.00p +0.14%

FTSE TechMARK - Fallers

Sarossa (SARS) 1.80p -4.51%

BATM Advanced Communications Ltd. (BVC) 19.75p -1.25%

Consort Medical (CSRT) 927.00p -0.59%

Dialight (DIA) 670.50p -0.30%

XP Power Ltd. (DI) (XPP) 1,636.00p -0.24%

IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 203.13 -0.18%