London pre-open: Stocks set for positive start after pound crashes

Stocks in London were set for a higher open on Friday after the pound crashed to near parity against the euro and 1.12 against the dollar in Asian trade, with exporters on the index likely to be benefit from a weaker sterling.

The FTSE 100 was called to open 65 points higher than Thursday’s close at 7,065.

CMC Markets’ Michael Hewson said: “Instead of talking about today’s payrolls numbers today’s focus is on the overnight flash plunge in sterling below 1.2000 against the dollar, which some have put down to a ‘fat finger’ algo trade.

“Whatever it was it hasn’t helped the negative sentiment currently prevailing in markets about the UK currency, as policymakers both sides of the Channel start to stake out their negotiating positions.”

On the data front, UK industrial production is at 0930 BST, but the main focus will be on the US nonfarm payrolls and the unemployment rate are at 1330 BST as investors try to gauge when the Federal Reserve might hike interest rates.

In corporate news, pharmaceutical giant AstraZeneca agreed to divest rights outside the US of its nasal spray to Johnson & Johnson affiliate CilagGmbH International for $330m.

AstraZeneca will not maintain an ongoing interest in the Rhinocort Aqua nasal spray as part of the deal, which is subject to closing conditions, and is expected to be completed in the final quarter of the year.

Vodafone announced on Friday that its subsidiary, Vodafone India, has acquired spectrum in all its key telecom circles in the latest spectrum auction for a total cost of INR 202.8bn.

The FTSE 100 firm said the new spectrum “significantly enhances” the coverage, capacity and speed of Vodafone India's 4G data services in its key circles, complementing existing high-quality 2G and 3G voice and data capabilities.

It now has 17 circles with 4G capability in the country, covering 91% of the subsidiary's total revenues and 94% of mobile data revenues.

Electra Partners said it portfolio company AXIO Group has received a binding offer from M3 Inc. to purchase Vidal Group, a European provider of reference drug information for healthcare professionals, for €100m.

The proposed transaction, which remains subject to certain conditions, would be the fourth major realisation from AXIO's portfolio.