London pre-open: Stocks seen down ahead of payrolls; Halifax data in focus

London stocks were set to open lower on Friday as investors mulled the latest UK house price data and looked ahead to the release of the non-farm payrolls report.

The FTSE 100 was called to open down around 17 points.

Naam Aslam, chief investment officer at Zaye Capital Markets, said: "European and US futures are trading lower as traders brace themselves for the most important economic data, also referred to as the mother of all economic numbers, the US NFP. The data will very much determine the future trajectory of the Fed’s monetary policy, and everyone is hoping that this number will bring good news for them. Traders have become highly cautious in their trading approach due to the lack of optimism in the economic numbers released so far this week.

"The consensus for US nonfarm payroll data is 164K, whereas the previous number came in at 114K. We also expect the headline unemployment rate to decline from its previous reading of 4.3% to 4.2%. This is what the market players and Wall Street anticipate from today's US labour market, but many are fearful that their expectations may not align with reality."

The non-farm payrolls report for August is due at 1330 BST, along with the unemployment rate and average earnings.

On home shores, figures from Halifax showed that house prices edged up to a two-year high in August as confidence picked up amid easing interest rates.

Prices rose 0.3% on the month following a 0.9% increase in July.

On the year, house prices rose 4.3% in August following a 2.4% gain the month before. This marked the strongest rate since November 2022, but Halifax pointed out that this was due in large part to the comparison with weaker growth this time last year.

The average price of a home stood at £292,505 versus £291,585 in July.

Amanda Bryden, head of mortgages at Halifax, said: "Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.

"Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.

"However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year."

In corporate news, GSK announced positive results from a phase three trial evaluating ‘Nucala’, or mepolizumab, in adults with COPD.

The FTSE 100 pharmaceuticals firm said the trial showed a statistically significant reduction in the annualised rate of moderate-to-severe exacerbations when Nucala was added to inhaled maintenance therapy in patients with type two inflammation.

Safety was consistent with the known profile of Nucala, and further analysis was ongoing, with full results to be presented later.

Darktrace announced that chief executive Poppy Gustafsson is stepping down, with chief operating officer Jill Popelka appointed as her successor, effective immediately.

Popelka, who joined the cybersecurity specialist in January and became COO in June, would also join the company's board of directors.

Darktrace said she has over two decades of leadership experience with global technology firms including Accenture, Snap and SAP SuccessFactors.