London open: Stocks flat ahead of payrolls report

At 0820 BST, the FTSE 100 was flat at 8,282.72.

Richard Hunter, head of markets at Interactive Investor, said: "With the ECB joining Canada, Sweden and Switzerland in cutting rates and beginning the easing cycle in developed markets, speculation will now return to the timing of the first Federal Reserve cut, currently believed as most likely to happen in September.

"Recent economic data, especially within the labour market, has shown signs of stalling, which adds particular significance to today’s non-farm payrolls number. The readings have tended to confound expectations of late, and whatever the result, the number will likely move the market. A significantly lower figure than expected could reignite concerns of a hard landing, whereas a particularly strong number would play to the narrative of the Fed’s previous assumption that rates would remain higher for longer and likely beyond September."

Hunter said the current consensus is that 185,000 jobs will have been added in May, compared to 175,000 in April and 315,000 in March.

"The unemployment rate is expected to remain unchanged at 3.9% and, ahead of the release, the market is still expecting two rate cuts this year, which adds to the finely balanced and increasingly important level which will be revealed later," he said.

The non-farm payrolls report for May is due out at 1330 BST, along with average earnings and the unemployment rate.

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 "static" in May, 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.

Amanda Bryden, head of mortgages at Halifax, said: "Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook.

"A period of relatively stability in both house prices and interest rates should give a degree of confidence to both buyers and selling.

"While homebuyers will continue to respond to changes in borrowing costs, set against a backdrop of limited supply of properties, the market is unlikely to see huge fluctuations in the near term."

In equity markets, housebuilder Bellway gained as it 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 tumbled as it said that chief executive Patrick McMahon was 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 Tennent’s beer, said corrections to the accounts would result in an aggregate underlying operating profit adjustment charge of €5m.

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.

Market Movers

FTSE 100 (UKX) 8,282.72 -0.03%
FTSE 250 (MCX) 20,674.84 -0.20%
techMARK (TASX) 4,849.31 -0.06%

FTSE 100 - Risers

Frasers Group (FRAS) 905.00p 2.43%
Convatec Group (CTEC) 252.00p 0.64%
Smith & Nephew (SN.) 1,041.00p 0.63%
National Grid (NG.) 869.40p 0.62%
Phoenix Group Holdings (PHNX) 502.00p 0.60%
Airtel Africa (AAF) 123.00p 0.57%
Barratt Developments (BDEV) 512.40p 0.55%
Fresnillo (FRES) 596.00p 0.51%
Compass Group (CPG) 2,213.00p 0.50%
Standard Chartered (STAN) 748.00p 0.48%

FTSE 100 - Fallers

Intermediate Capital Group (ICG) 2,286.00p -1.30%
Anglo American (AAL) 2,387.00p -1.04%
Antofagasta (ANTO) 2,193.00p -0.95%
Berkeley Group Holdings (The) (BKG) 5,215.00p -0.86%
Flutter Entertainment (DI) (FLTR) 14,840.00p -0.74%
Spirax Group (SPX) 8,810.00p -0.68%
Rolls-Royce Holdings (RR.) 455.20p -0.65%
3i Group (III) 2,933.00p -0.64%
Croda International (CRDA) 4,326.00p -0.60%
Pershing Square Holdings Ltd NPV (PSH) 4,194.00p -0.57%

FTSE 250 - Risers

Genus (GNS) 1,868.00p 2.41%
Ferrexpo (FXPO) 46.00p 2.22%
Mitie Group (MTO) 120.60p 2.20%
Pennon Group (PNN) 620.00p 1.81%
Tritax Eurobox (GBP) (EBOX) 61.00p 1.67%
Kier Group (KIE) 146.00p 1.39%
TBC Bank Group (TBCG) 2,600.00p 1.36%
Octopus Renewables Infrastructure Trust (ORIT) 75.60p 1.34%
Ithaca Energy (ITH) 129.30p 1.17%
PZ Cussons (PZC) 111.20p 1.09%

FTSE 250 - Fallers

AO World (AO.) 111.00p -3.31%
Playtech (PTEC) 471.00p -2.79%
Zigup (ZIG) 414.50p -2.59%
Genuit Group (GEN) 446.00p -2.51%
Mitchells & Butlers (MAB) 300.50p -2.44%
Lancashire Holdings Limited (LRE) 604.00p -2.27%
Carnival (CCL) 1,170.00p -2.09%
CMC Markets (CMCX) 262.00p -2.06%
Computacenter (CCC) 2,668.00p -1.98%
Hammerson (HMSO) 27.90p -1.97%