London open: FTSE edges higher ahead of payrolls

London stocks rose in early trade on Friday following a solid session on Wall Street, as investors eyed the release of the all-important non-farm payrolls report.

At 0820 GMT, the FTSE 100 was up 0.2% at 7,460.92.

Sentiment got a boost this week after both the US Federal Reserve and the Bank of England left interest rates unchanged, sparking hopes that rates have peaked.

Looking ahead to the rest of the day, attention will turn to the non-farm payrolls report, unemployment rate and average earnings, all due at 1230 GMT.

CMC Markets analyst Michael Hewson said: "Expectations are for today’s October payrolls to come in at 185k, which has been the estimate of choice over the last three months.

"Most of the new jobs being added have been in services over the last few months and today’s ISM services data could well offer further insights into that after the payroll’s numbers have been released."

Before that, the S&P Global CIPS UK services PMI for October is scheduled for release at 0930 GMT.

Investors were also mulling industry data showing that retail footfall fell sharply in October as heavy rainfall across the UK kept shoppers at home.

According to the latest BRC-Sensormatic IQ Footfall Monitor, total UK footfall fell 5.7% year-on-year in October, compounding September’s 2.9% decline.

Within that, high street footfall was down 4.6%, while retail parks and shopping centres saw declines of 4.3% and 7.3%, respectively.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Umbrellas were up as heavy rainfall descended across the UK in October, leading many shoppers to stay at home.

"As inflationary pressures on households begin to ease, some people are shopping around slightly less, braving the rain only to make their final purchases."

However, she added: "While consumer confidence may be higher than 2022, it is still very weak. The economic landscape remains tough, with input prices and cost pressures above normal levels."

Chinese services figures were also in focus, as the latest Caixin purchasing managers’ index rose to 50.4 in October from 50.2 in September, coming in below consensus expectations for a reading of 51.0.

A reading above 50.0 signals expansion, while a reading below indicates contraction.

An official survey released earlier in the week showed the services PMI fell to 50.1 in October from 50.9 in September.

Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics, said: "China’s services sector recovery is likely to continue to ebb, after a marked reopening rebound this year. People have been more willing to spend on services than goods and are worried about the murky income outlook, amid the subdued labour market.

"China’s consumption-support policies have focused on the supply-side, such as putting on more concerts, car shows and domestic tourism facilities, which probably had more traction during the warm summer months. We see few short-term catalysts for consumption to lead growth, given that policymakers oppose cash handouts to households, which they see as encouraging laziness."

In equity markets, corporate news was scarce but consumer electronics retailer Currys rallied after agreeing to sell its entire Greek and Cypriot division for €200m (£175m), as it looks to simplify its business model and free up cash.

The company is selling Dixons South East Europe, trading as Kotsovolos, to Public Power Corporation.

DIY and building supplies retailer Wickes gained after saying it remains on track to meet full-year targets despite a slump in sales in the third quarter, as it warned some installation sales would be pushed into next year.

In broker note action, Smith & Nephew jumped to the top of the FTSE 100 after an upgrade to ‘overweight’ at JPMorgan, while Anglo American traded up after an upgrade to ‘outperform’ at Oddo.

Market Movers

FTSE 100 (UKX) 7,460.92 0.19%
FTSE 250 (MCX) 17,869.62 0.58%
techMARK (TASX) 4,075.31 0.37%

FTSE 100 - Risers

Smith & Nephew (SN.) 988.00p 2.70%
Flutter Entertainment (CDI) (FLTR) 13,665.00p 2.40%
Sainsbury (J) (SBRY) 277.00p 1.91%
Prudential (PRU) 888.00p 1.88%
Fresnillo (FRES) 553.40p 1.39%
Glencore (GLEN) 446.10p 1.33%
NATWEST GROUP (NWG) 184.05p 1.24%
HSBC Holdings (HSBA) 608.30p 1.16%
Croda International (CRDA) 4,488.00p 1.06%
Rio Tinto (RIO) 5,406.00p 0.97%

FTSE 100 - Fallers

Shell (SHEL) 2,744.00p -0.87%
Halma (HLMA) 1,866.50p -0.85%
Relx plc (REL) 2,869.00p -0.69%
AstraZeneca (AZN) 10,300.00p -0.60%
Sage Group (SGE) 985.60p -0.59%
Experian (EXPN) 2,597.00p -0.42%
Diploma (DPLM) 2,916.00p -0.41%
Convatec Group (CTEC) 208.80p -0.38%
Reckitt Benckiser Group (RKT) 5,526.00p -0.29%
Centrica (CNA) 157.20p -0.25%

FTSE 250 - Risers

Currys (CURY) 48.72p 5.96%
Petershill Partners (PHLL) 161.20p 4.68%
Kainos Group (KNOS) 1,193.00p 4.65%
Dr. Martens (DOCS) 126.00p 4.22%
Ceres Power Holdings (CWR) 229.00p 4.19%
Tyman (TYMN) 265.00p 3.92%
JTC (JTC) 730.00p 3.77%
PureTech Health (PRTC) 160.60p 3.08%
OSB Group (OSB) 344.20p 2.81%
Crest Nicholson Holdings (CRST) 174.80p 2.70%

FTSE 250 - Fallers

Senior (SNR) 154.80p -3.01%
Coats Group (COA) 68.30p -2.71%
Savills (SVS) 798.00p -2.39%
Caledonia Investments (CLDN) 3,235.00p -1.82%
BlackRock Greater Europe Inv Trust (BRGE) 484.50p -1.32%
NextEnergy Solar Fund Limited Red (NESF) 77.80p -1.27%
Helios Towers (HTWS) 65.00p -1.22%
Bluefield Solar Income Fund Limited (BSIF) 114.40p -1.21%
IWG (IWG) 135.50p -1.02%
Aston Martin Lagonda Global Holdings (AML) 201.00p -0.99%