The FTSE 100, like other markets across Europe, is in a noncommittal mood ahead of the announcement of the non-farm payroll figures later today.
The FTSE 100 continued to bob around the 7,055, falling 0.14%, while the DAX edged to a fresh all-time high of 15,675, and the CAC lurked at 6,500.
“The futures are suggesting much the same for the US open, with the Dow Jones set to start Friday’s trading unchanged around the 34,600 mark,” said Connor Campbell, financial analyst at Spreadex.
It could be argued that nothing much changes until the latest non-farm data is released.
“Last month was a shocker, with the headline nonfarm figure coming in at just 266,000 against the near-1 million forecast. Yet it was a result that investors weren’t exactly unhappy with, given it may cause the Federal Reserve to reconsider any stimulus tapering talk,” Campbell said.
“For May, however, signs are pointing to a rebound. The ADP non-farm reading on Thursday shot past expectations, rising from 654,000 to 978,000, while jobless claims have been steady falling week-on-week, yesterday striking a pandemic-low of 385,000.”
Analysts’ estimates have the nonfarm number climbing to 645,000, with the unemployment rate falling from 6.1% to 5.9%. Average hourly earnings are, as ever, the one outlier, with expectations of 0.2% against the previous month’s 0.7%.
“Considering that nonfarm forecast lies somewhere between the levels expected last month, and the number produced last month, it will be interesting to see how investors react. It might hit that sweet spot – strong enough to point to a continuing recovery, but not strong enough to prompt any action from the Fed,” Campbell said.
FTSE 100 Top Movers
Johnson Matthey (1.42%), B&M (1.04%) and Royal Mail (0.97%) are the top movers on the FTSE 100 on Friday having made modest gains.
At the bottom end during the morning session is Rolls-Royce (-2.77%), Bunzl (-2.21%) and Sage Group (-1.63%).
