London pre-open: Stocks seen higher ahead of payrolls

London stocks were set for a positive open on Friday, taking their cue from an upbeat session on Wall Street as investors eyed the release of the latest non-farm payrolls report.

The FTSE 100 was expected to open 52 points higher at 7,595.

CMC Markets analyst Michael Hewson said: “European markets look set for a strong open this morning having started on the front foot yesterday, helped by a continuation of the recent theme of an improving economic environment, as further improvements in economic data fuelled a positive start to the month, which was carried on in the US, after Europe had closed.

“This rise in US markets saw yet more record closes across the board, after a singularly upbeat ADP payrolls report showed that the US economy added 253k jobs in May, well above expectations of 177k. This bumper number more or less confirmed the prospect of a June rate rise, with the potential for further moves later in the year, maybe in September, if the economy holds up. Yesterday’s number also raises the bar for today’s official payrolls report which is expected to come in at around the 180k level, down from 211k in April.”

The payrolls report is due at 1330 BST, along with the unemployment rate. Before that, the UK construction PMI is at 0930 BST.

On the corporate front, dashing hopes of takeover talks that had emerged earlier in the week, Inmarsat published two announcements on Friday, but these were to reveal two new satellite contracts.

The FTSE 250 mobile satellite communications provider issued a contract to Thales Alenia Space to build another of its Global Xpress broadband satellites and has also been signed up by Qatar Airways to provide in-flight broadband to the Middle East megacarrier's passengers.

GlaxoSmithKline and its majority-owned specialist HIV company ViiV Healthcare, which is also held by Pfizer and Shionogi as shareholders, announced regulatory submissions to the European Medicines Agency (EMA) and US Food and Drug Administration (FDA) on Friday for a single-tablet, two-drug regimen of dolutegravir and rilpivirine, for the maintenance treatment of HIV-1 infection.

The company said the submissions were based on the SWORD studies that included more than 1,000 patients who previously achieved viral suppression on a three- or four-drug antiretroviral regimen.

Metro Bank has completed the purchase of a portfolio of UK mortgages from Cerberus European Residential Holdings B.V. for £ 596.7m. The Portfolio consists of approximately 92% buy-to-let mortgages, with the remainder being owner occupied.