London pre-open: Stocks to fall on Asian losses, ahead of payrolls

London stocks were set to fall at the open on Friday following heavy losses in Asia, as investors eyed the latest US non-farm payrolls report.

The FTSE 100 was called to open around 35 points lower.

The payrolls report for July is due at 1330 BST, along with the unemployment rate and average earnings.

TD Securities said: "We expect payrolls to hold steady in July, with the series largely remaining around the 200k mark, with rising jobless claims and the impact from Hurricane Beryl providing risks to the downside.

"We also expect the unemployment rate to stay unchanged at 4.1% following its three consecutive increases, and for average hourly earnings to advance at a more subdued 0.2% m/m pace in July (3.6% y/y)."

In UK corporate news, IAG described its performance during the first half of 2024 as "strong" and announced the restart of dividend payments.

For the three months ending on 30 June the carrier posted a 7.8% jump in revenues to approximately €8.3bn.

Operating profits for the latest three months came in at €1.24bn or 0.8% lower, but were nevertheless ahead of UBS analyst Jarrod Castle's estimate for €1.01bn. Profit before tax of €909m beat Castle´s estimate of €673m.

IAG also disclosed a "significant" increase in free cash flow for the half to reach €3.2bn.

Overnight, the carrier withdrew its bid to acquire Air Europa, arguing that doing so was in the best interests of its shareholders. A three euro cent interim dividend was approved.

Budget carrier Wizz Air reported a fall in operated capacity and passenger numbers in July due to the impact of the Pratt & Whitney turbofan engine-related groundings of some of its Airbus 321neo fleet of aircraft.

Capacity fell 0.3% year-on-year to 6.334 million seats, while passenger numbers were down 1.4% to 5.9 million. The load factor was 93.8% versus 94.9% last year.

Intertek Group reported strong first-half results, with double-digit growth in operating profit, earnings per share and free cash flow.

Revenue grew 6.6% at constant currency, supported by broad-based growth across various sectors, and recent acquisitions contributed positively.

The company also achieved significant cost savings, improved margins, reduced net debt, and declared a 43% increase in its interim dividend.