London pre-open: Stocks to rise; jobs data eyed
London stocks were set to gain at the open on Monday following four sessions of losses, as investors eyed jobs data later in the week.
The FTSE 100 was called to open around 30 points higher.
Kathleen Brooks, research director at XTB, said: "In the UK, labour market data will be scrutinised to see whether wage prices have moderated. Monthly payrolls are expected to have declined by 13k in October, the 3-month-on-month unemployment rate is expected to rise a notch to 4.1% from 4% in August.
"Average weekly earnings are expected to rise a touch to a 3.9% quarterly rate, while excluding bonus, weekly earnings are expected to moderate to 4.7% from 4.9%. This data is expected to show that wage pressures remain stubborn in the UK. The unemployment rate may be rising, but at a slow pace that is not enough to weaken wages.
"The interest rate futures market has mostly priced out the chance of a December rate cut from the BOE, instead there is a 74% probability of a cut in February. We doubt that an upward surprise to labour market data or wage growth will move the dial on a February rate cut, however, it could help boost the pound. GBP/USD fell last week along with other G7 currencies, however, it had lower volatility than its peers, and is currently hovering around $1.2920.
"The election of Trump makes it hard for the pound to stage a sustained rally in the medium term, in our view, although it may be more protected from a sharp selloff compared to other G7 currencies."
In corporate news, Syncona announced that its portfolio company Autolus Therapeutics has received US FDA approval for ‘Aucatzyl’, a CAR T-cell therapy for adult patients with relapsed or refractory B-cell precursor acute lymphoblastic leukaemia.
The FTSE 250 company said the approval followed results from the ‘FELIX’ clinical trial, which showed a strong safety profile and notable efficacy, with 63% of patients achieving complete remission. It said Aucatzyl, manufactured in the UK, is the first CAR T-cell therapy in the category to be approved without a risk evaluation and mitigation strategy programme.
NatWest has repurchased £1bn of shares from the HM Treasury, taking the government’s stake in the banking group to 11.4%.
The company said that it made an off-market purchase of 262.6m shares on Friday at a price of 380.8p, representing a 3.16% shareholding.
This was the bank’s second buyback of government shares in 2024. “This transaction represents another important milestone on the path to full privatisation,” said chief executive Paul Thwaite.