London midday: Markets cautious ahead of US jobs report

7th Dec 2012 11:45

The FTSE 100 was trading within a tight range on Friday morning as caution set in ahead of the eagerly-anticipated US employment report later today.However, providing a drag on sentiment this morning was newsflow from Germany: the Bundesbank now expects just 0.4% growth in the economy next year, down from its previous prediction in June for a 1.6% expansion."Reaction to the news - whilst predictably negative - has been notably calm, as traders take the view that policy makers will now be forced to pump liquidity into the markets short term," said market analyst Michael Hewson from CMC Markets.Meanwhile, economic data from the UK failed to boost the mood, with both industrial production and manufacturing production figures missing the mark this morning, declining by more than forecast in October."Despite [the UK data], the UK's FTSE 100 is not too far from attempting another assault on the 5900 level, a key target for further upside momentum - today's US jobs data may provide the push as the outcome is unlikely to dramatic push markets lower," said market strategist Ishaq Siddiqi from ETX Capital.The US employment report is due out at 08:30 in New York (13:30 London time). Consensus estimates are for a 90,000 gain in non-farm payrolls in November, much worse than the 171,000 increase seen in October. Meanwhile, the unemployment rate is expected to remain at 7.9%. However, many factors are expected to have thrown up headwinds over the last month, including: an early Thanksgiving which could have distorted hiring patterns for retailers; the looming 'fiscal cliff' which could hold back recruitment until the New Year; and by no means least, Hurricane Sandy.FTSE 100: Defensives do their best to bolster the FootsieDefensive stocks, such as those in the utilities, tobacco and pharmaceuticals categories, were performing well today, as they benefited from risk aversion which has put a dent in the mining sect this morning. Centrica, Imperial Tobacco and Shire were among the best performers.Commodities trader and mining giant Glencore was trading lower despite receiving the approval from the Ministry of Commerce of the People's Republic of China for its acquisition of Viterra, the final regulatory green light needed to take over the Canadian agribusiness. Sector peers Xstrata, ENRC and Antofagasta joined Glencore in the red. Associated British Foods was in demand after its Chairman said at today's AGM that trading for the first two months of the new financial year has been "good", driven mainly be its Primark division "where the momentum that delivered the strong finish to last year has continued."Marks & Spencer was pulling back after a strong rise on Thursday. Market rumours yesterday linked retail tycoon Sir Philip Green to a possible bid for the High Street giant, as speculation followed Green's sale of a 25% stake in Top Shop last week. However an Arcadia spokesperson denied such speculation yesterday when questioned by Sharecast. Sweeteners and food products giant Tate & Lyle was in demand after agreeing to a £347m partial pensioner buy-in which covers nearly half of its total pensioner liabilities. The firm said that the trustee of the its group pension scheme has made the agreement with financial services giant Legal & General about the buy-in which covers around 43% of its commitments, "which effectively hedges these liabilities in full".FTSE 250:Berkeley jumps after strong first halfHouse builder Berkeley Group jumped early on after seeing revenue and profit surge in the first half, as it declared an interim dividend of 15p per share, compared with nil the year before. Revenue increased 69.4% and pre-tax profit rose 40.7% in the six months to October 31st. Sector peer Bellway fell despite reporting a 6% rise in reservations to around 100 per week in the 18 weeks ended November 30th, as a result of an improvement to customers' ability to access higher loan-to-value mortgage finance. FTSE 100 - RisersCentrica (CNA) 340.10p +2.56%Experian (EXPN) 1,050.00p +1.35%Diageo (DGE) 1,879.00p +1.35%Shire Plc (SHP) 1,888.00p +1.29%Imperial Tobacco Group (IMT) 2,509.00p +0.97%Johnson Matthey (JMAT) 2,434.00p +0.95%Associated British Foods (ABF) 1,488.00p +0.88%Babcock International Group (BAB) 1,003.00p +0.65%British American Tobacco (BATS) 3,272.50p +0.63%SSE (SSE) 1,438.00p +0.56%FTSE 100 - FallersXstrata (XTA) 1,021.00p -1.97%International Consolidated Airlines Group SA (CDI) (IAG) 171.20p -1.83%GKN (GKN) 221.50p -1.42%Antofagasta (ANTO) 1,318.00p -1.42%Glencore International (GLEN) 341.10p -1.33%Marks & Spencer Group (MKS) 392.80p -1.26%Standard Chartered (STAN) 1,482.50p -1.20%Anglo American (AAL) 1,790.50p -1.19%ITV (ITV) 101.90p -1.07%Royal Bank of Scotland Group (RBS) 297.20p -1.03%FTSE 250 - RisersBerkeley Group Holdings (The) (BKG) 1,716.00p +4.00%Supergroup (SGP) 624.50p +3.82%NMC Health (NMC) 177.20p +3.63%Talvivaara Mining Company (TALV) 96.05p +3.17%Imagination Technologies Group (IMG) 439.20p +2.98%Synthomer (SYNT) 191.00p +2.69%Home Retail Group (HOME) 127.90p +2.32%Ruspetro (RPO) 84.50p +1.81%AZ Electronic Materials SA (DI) (AZEM) 375.30p +1.71%RPS Group (RPS) 209.10p +1.70%FTSE 250 - FallersPetropavlovsk (POG) 318.70p -3.86%Invensys (ISYS) 317.10p -3.32%Kenmare Resources (KMR) 30.82p -3.14%African Barrick Gold (ABG) 407.40p -2.77%Savills (SVS) 463.00p -2.61%Man Group (EMG) 74.50p -2.61%Rathbone Brothers (RAT) 1,202.00p -2.36%New World Resources A Shares (NWR) 263.70p -2.33%Kier Group (KIE) 1,189.00p -1.98%JD Sports Fashion (JD.) 707.50p -1.94%BC