London open: Stocks start lower amid US election jitters, ahead of US jobs report

Stocks in London began the session firmly in the red on Friday ahead of the latest non-farm payrolls release and as the US election continues to weigh on investors’ minds.

The FTSE 100 was down by 1.07% or 72.44 points to 6,717.48 as of 0817 GMT, alongside losses of 0.46% for front month Brent crude oil futures to $46.14 per barrel, while cable was up by 0.07% at 1.2469.

Overnight, the S&P 500 closed lower for an eight consecutive session, the ninth such episode since March 1957, with the last one occurring in October 2008. Another close lower on Friday would mark the first nine-day losing streak since 1980, according to Deutsche Bank, as investors batten down the hatches ahead of the 8 November presidential elections in the States.

There are no major UK data releases due but in the US, the nonfarm payrolls report and unemployment rate are at 1230 GMT, along with the trade balance.

CMC Markets’ Michael Hewson said the payrolls report is expected to show an improvement of 175,000 from September’s 156,000.

“There is a concern that this estimate may well be on the high side given the weak employment component of yesterday’s ISM non-manufacturing survey, which saw a sharp fall from 57.2 to 53.1, while the headline number also showed a similar drop from the September numbers.

“The unemployment rate is expected to come down to 4.9% from 5%, while average hourly earnings are expected to remain unchanged at 2.6%. One of the Fed’s main concerns is stagnant wage growth at a time when inflation is starting to show signs of picking up, and while we do appear to be starting to see signs of rising prices, wages don’t appear to be showing signs of following suit.”

In corporate news, Paddy Power Betfair posted a trading update for the three months to 30 September on Friday, with revenue up 25% to £404m, or up 15% in constant currencies.

The FTSE 100 bookmaker said that growth was driven by sports, including a strong conclusion to the Euro 2016 tournament, with sportsbook stakes up 26%, or 14% at constant currency. Underlying EBITDA rose 53% to £113m and underlying operating profit was up 68% to £95m, with the company’s underlying EBITDA margin increasing from 23% to 28%.

Vodafone announced on Friday that its Dutch company has agreed to sell its consumer fixed business to T-Mobile Netherlands Holding for an undisclosed fee, in order to settle a condition by the European Commission for a proposed merger in the country.

Vodafone Libertel BV is to sell Vodafone Thuis as a part of the deal with the European Commission so the company and Liberty Global, a US telecommunications company, can go ahead with the proposed merger of Vodafone Netherlands and Ziggo, a cable operator, to form a joint venture.

Budget airline EasyJet said passenger numbers rose last month, but the load factor dropped. Passenger numbers were up 6.9% from last October to just over 6.84m, but the load factor – which gauges how full the planes are – fell to 90.2% from 93.3%.

On a rolling 12-month basis, passenger numbers were up 6.3% to 73.58m, while the load factor dipped to 91.3% from 91.7%.

Market Movers

FTSE 100 (UKX) 6,733.42 -0.84%
FTSE 250 (MCX) 17,398.42 -1.04%
techMARK (TASX) 3,280.59 -0.83%

FTSE 100 - Risers

Paddy Power Betfair (PPB) 8,890.00p 3.61%
Rolls-Royce Holdings (RR.) 714.50p 0.99%
Burberry Group (BRBY) 1,427.00p 0.49%
Lloyds Banking Group (LLOY) 56.19p 0.29%
BAE Systems (BA.) 536.00p 0.28%
Sky (SKY) 811.00p 0.00%
Worldpay Group (WPG) 282.70p -0.11%
National Grid (NG.) 1,018.50p -0.20%
British American Tobacco (BATS) 4,557.00p -0.22%
WPP (WPP) 1,703.00p -0.23%

FTSE 100 - Fallers

Hikma Pharmaceuticals (HIK) 1,643.00p -5.85%
Dixons Carphone (DC.) 332.10p -2.75%
Royal Bank of Scotland Group (RBS) 189.00p -2.53%
Mediclinic International (MDC) 875.50p -2.45%
Randgold Resources Ltd. (RRS) 6,940.00p -2.39%
Next (NXT) 4,973.00p -2.30%
Intu Properties (INTU) 266.50p -2.20%
Smith & Nephew (SN.) 1,120.00p -2.18%
Legal & General Group (LGEN) 209.00p -2.15%
Shire Plc (SHP) 4,443.00p -2.12%

FTSE 250 - Risers

Aggreko (AGK) 843.00p 6.91%
Tullett Prebon (TLPR) 378.50p 2.97%
CYBG (CYBG) 280.80p 2.15%
Caledonia Investments (CLDN) 2,420.00p 1.42%
Sophos Group (SOPH) 235.70p 1.29%
UK Commercial Property Trust (UKCM) 80.00p 1.07%
PayPoint (PAY) 1,108.00p 0.73%
BH Macro Ltd. GBP Shares (BHMG) 1,900.00p 0.64%
Barr (A.G.) (BAG) 499.40p 0.48%
Greencoat UK Wind (UKW) 116.20p 0.43%

FTSE 250 - Fallers

DFS Furniture (DFS) 231.00p -12.40%
Lancashire Holdings Limited (LRE) 719.50p -5.08%
Euromoney Institutional Investor (ERM) 1,035.00p -3.72%
JRP Group (JRP) 119.40p -3.32%
Tullow Oil (TLW) 251.90p -2.89%
Allied Minds (ALM) 334.90p -2.81%
Keller Group (KLR) 692.50p -2.67%
Brown (N.) Group (BWNG) 191.20p -2.55%
Countrywide (CWD) 180.80p -2.53%
Beazley (BEZ) 360.50p -2.46%