London pre-open: Stocks seen up ahead of payrolls
London stocks were set to rise at the open on Friday following losses in the previous session, as investors eye the latest US non-farm payrolls report.
The FTSE 100 was called to open 42 points higher at 7,570.
CMC Markets analyst Michael Hewson said: "As we look ahead to today’s price action, European markets look set to open higher in the wake of last night’s after-hours surge in US markets, as attention now shifts to this afternoon’s US payrolls report for January.
"Expectations are low for the headline number having seen weak reports for November and December, with numbers of 249k, and 199k respectively, although unemployment fell back to 3.9%, and looks set to stay at that level, when the latest numbers drop today.
"We’ve already been set up for a weak number for January by Philadelphia Fed President Patrick Harker earlier this week, when he said that because of the Omicron surge, and the sharp rise in weekly jobless claims at the beginning of January that the Fed was likely to look past a disappointing report.
"Nonetheless this week’s ADP report gave us a foretaste of what to expect today when a forecast of 180k turned into a decline of -301k, with the decline put down to sickness, or absences due to people isolating through exposure to an infected person."
The payrolls report is due at 1330 GMT, along with the unemployment rate and average earnings. On home turf, Markit’s UK construction PMI for January is at 0930 GMT.
In corporate news, travel food outlet operator SSP Group said the Omicron Covid variant and government restrictions saw trading in the eight weeks to January 30 slump to 57% of pre-pandemic levels.
The Upper Crust owner said recent weeks “have been more encouraging”, as curbs were lifted in the UK and some Continental European markets, with sales now trending positively again, driven mainly by strengthening trading in the rail sector as commuter travel returns.
Real estate investment trust Shaftesbury said its recovery was "on track", despite a short period of disruption caused by Omicron restrictions, as visitors and office workers were returned to London's West End and both its near and longer-term outlook remained "positive".
The FTSE 250-listed firm highlighted that £10.6m in leasing transactions were completed in the quarter, while rent reviews added a further £1.3m in rental value and 60 commercial lettings and lease renewals added an additional £7.9m in rental value.
Shaftesbury added that rent collection continued to improve in the period, with the group collecting 88% of contracted rents due for the three months ended 31 December.