London pre-open: Stocks seen up ahead of payrolls

London stocks were set to rise at the open on Friday as investors eye the release of the latest US non-farm payrolls report.

The FTSE 100 was called to open 27 points higher at 7,103.

The payrolls report is due at 1330 BST, along with the unemployment rate and average earnings. On home shores, meanwhile, UK construction PMI is at 0930 BST.

CMC Markets analyst Michael Hewson said: "With Asia markets having a decent session, today’s European open is expected to follow suit with a positive open in the wake of the latest China trade data, with the main focus on the US jobs numbers for April.

"Before that we have the latest UK construction PMI for April which is expected to round off a trifecta of 60+ readings, as the beginning of Q2 gets off to a flier for the UK economy.

"Despite a slowdown in the US jobs market at the end of last year, we’ve seen an impressive rebound “with jobs gains of 166k, 468k in January and February, and then a stunning 916k in March.

"There is no question that the huge amount of fiscal support that has been pushed into the US economy over the last four months has helped in this regard, with $900bn agreed at the beginning of January, followed by a much bigger $1.9trn stimulus which was signed off in March.

“Combined with the accelerated vaccination program that is continuing apace across the US, along with a slowdown in the rise in virus cases, hospitalisations and deaths, which is also helping in terms of the US recovery, expectations for today’s April’s job numbers now similarly elevated.

"Average estimates are for a number in the region of 1m especially since weekly jobless claims are also trending lower dropping below 500k a week yesterday, and a post lockdown low, while the unemployment rate is expected to fall further, from 6% to 5.8%."

In corporate news, British Airways owner IAG reported a first quarter operating loss of €1.06bn and pulled full-year guidance as the Covid pandemic continued to batter the airline industry.

The result compares with a loss of €1.86bn a year earlier. IAG said it expects to fly around 25% of 2019 capacity, but warned that those plans “remain uncertain and subject to review”.

InterContinental Hotels Group said trading improved in the first quarter and that a pickup in March continued into April, particularly in the US and China.

Revenue per available room was down 50.6% in the three months to the end of March compared with two years earlier and 33.7% from a year earlier.