London pre-open: Stocks to edge up ahead of payrolls

London stocks were set to edge higher on Friday as investors eyed the latest US non-farm payrolls report.

The FTSE 100 was called to open around 14 points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Today, all eyes turn toward the US jobs data. The week was marked by softer-than-expected job openings in April, a significantly lower-than-expected May ADP report, a surprise decline in the pace of unit labour costs from 4.7% to 4% and an unexpected jump in US weekly jobless claims.

"The consensus of analyst estimates on Bloomberg bet that the US economy may have added around 180K new nonfarm jobs last month, the unemployment rate is seen steady near 3.9% and wages growth may have slightly accelerated on a monthly basis.

"A soft jobs report should support the dovish Fed expectations and further weigh on the US dollar. The dollar index remains sold at the 100, 200-DMA area this week and has potential to decline with a soft set of data into next week’s FOMC meeting. Whatever today jobs data says, the Fed isn’t expected to cut rates when it meets next week, the Fed members sounded very cautious regarding their inflation expectations, therefore the new dot plot will probably show one or maximum two rate cuts on average this year - down from three expected rate cuts at the latest plot. But that’s mostly priced in and could be the peak hawkishness for the Fed this year - if the economic data continues to disappoint."

On home shores, data released earlier showed that house prices were largely unchanged last month, as the market continued to stabilise.

According to the latest Halifax house price index, average house prices were down just 0.1% on a monthly basis. On an annual basis, house price growth was 1.5%, up from 1.1% in April.

As a result, a typical UK home now costs £288,688.

In corporate news, housebuilder Bellway kept its guidance for housing completions this fiscal year but lifted its forecast for pricing.

The company now expects selling prices to average £305,000 for the 12 months to 31 July, down from £310,306 last year but ahead of previous guidance of £295,000 due to changes in product mix.

The company said it has seen stronger trading through the spring selling seasons, with improved affordability supporting an increase in customer confidence and reservation rates compared to the first half of the financial year.

Drinks maker C&C Group said chief executive Patrick McMahon is stepping down after accounting errors in the last three years when he was chief finance director.

The company, which makes brands such as Magners cider and Tennents beer, said corrections to the accounts would result in an aggregate underlying operating profit adjustment charge of €5m.

Chair of the board Ralph Findlay has been appointed group CEO with immediate effect “to ensure continuity of executive leadership” and is expected to remain in post as for between 12 and 18 months.

C&C released unaudited results for the year to February 29 revealing a loss before tax of €111m compared with a profit of €52m a year earlier.