London midday: Stocks touch lower ahead of US payrolls

London stocks were just a touch lower by midday on Friday in muted trade, as investors mulled the impact of Prime Minister Boris Johnson’s exit and looked ahead to the release of the latest US non-farm payrolls report.

The FTSE 100 was down 0.1% at 7,180.99.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said global markets were "hotly anticipating" the US jobs report.

"This is likely to be a double-edged sword for investors. While the data is expected to show another round of strong hiring, which is inherently positive, it also paves the way for policymakers to hike interest rates even more aggressively. This is an upside-down situation whereby the announcement of a stronger economic foundation could be viewed as a catalyst for increased market jitters."

She added: "The bigger question now is who the next prime minister will be. Traders will want to know if a new leader is likely to lend support to the idea of further tax hikes. On the other hand, a reduced tax environment may well be expansionary for the economy, but does pose the risk of inflation lingering for longer. Either way, it would appear that as Boris shut the door to Number Ten after his speech yesterday, the door also slammed shut on the potential for market panic."

The US payrolls report is due at 1330 BST, along with average earnings and the unemployment rate.

In equity markets, miners were in the red as metals prices fell, with Anglo American, Rio and Glencore all lower.

Marks & Spencer was also weaker after a downgrade to ‘sell’ at Goldman Sachs.

On the upside, equipment rental firm Ashtead was a high riser after an upgrade to ‘overweight’ at Morgan Stanley.

JD Sports rallied as it announced that former Morrisons chair Andy Higginson had been appointed chairman.

Housebuilder Vistry also gained as it said it expects price rises to drive margins above full year targets following a first half driven by strong demand.

Market Movers

FTSE 100 (UKX) 7,180.99 -0.11%
FTSE 250 (MCX) 18,872.85 -0.01%
techMARK (TASX) 4,334.03 -0.19%

FTSE 100 - Risers

Ashtead Group (AHT) 3,861.00p 3.73%
JD Sports Fashion (JD.) 125.70p 2.82%
CRH (CDI) (CRH) 2,932.50p 2.79%
Harbour Energy (HBR) 327.30p 2.60%
Fresnillo (FRES) 689.00p 2.23%
Coca-Cola HBC AG (CDI) (CCH) 1,839.50p 2.19%
Rolls-Royce Holdings (RR.) 87.13p 2.19%
St James's Place (STJ) 1,139.00p 2.02%
Next (NXT) 6,292.00p 1.94%
Melrose Industries (MRO) 157.05p 1.62%

FTSE 100 - Fallers

Standard Chartered (STAN) 579.00p -3.02%
HSBC Holdings (HSBA) 522.20p -2.50%
Entain (ENT) 1,071.50p -2.28%
Anglo American (AAL) 2,760.00p -1.99%
GSK (GSK) 1,760.40p -1.73%
Rio Tinto (RIO) 4,778.50p -1.68%
Prudential (PRU) 1,010.00p -1.51%
Glencore (GLEN) 426.85p -1.48%
Scottish Mortgage Inv Trust (SMT) 790.60p -1.35%
Hikma Pharmaceuticals (HIK) 1,700.50p -0.96%

FTSE 250 - Risers

Chrysalis Investments Limited NPV (CHRY) 102.00p 5.26%
Tullow Oil (TLW) 44.00p 4.76%
Aston Martin Lagonda Global Holdings (AML) 442.50p 3.90%
Wizz Air Holdings (WIZZ) 1,862.00p 3.04%
Currys (CURY) 75.75p 2.99%
Wood Group (John) (WG.) 156.90p 2.65%
Vistry Group (VTY) 834.50p 2.58%
Petrofac Ltd. (PFC) 112.30p 2.56%
Energean (ENOG) 994.00p 2.42%
ITV (ITV) 67.70p 2.42%

FTSE 250 - Fallers

Bridgepoint Group (Reg S) (BPT) 216.00p -3.14%
Watches of Switzerland Group (WOSG) 776.00p -3.00%
Polymetal International (POLY) 180.00p -2.70%
Mitchells & Butlers (MAB) 177.80p -2.68%
ICG Enterprise Trust (ICGT) 1,086.00p -2.34%
Drax Group (DRX) 656.00p -2.31%
HICL Infrastructure (HICL) 170.40p -2.29%
Syncona Limited NPV (SYNC) 197.20p -2.13%
UK Commercial Property Reit Limited (UKCM) 73.50p -2.13%
Shaftesbury (SHB) 521.00p -2.07%