London pre-open: Flat start expected ahead of US jobs data

7th Jun 2013 07:36

After dropping to its lowest level since April 22nd, the FTSE 100 is expected to open broadly flat on Friday morning as traders tread cautiously ahead of the eagerly-anticipated US jobs report due out this afternoon.City sources predict that London's benchmark index will open more or less unchanged from yesterday's close of 6,336, as market wait to see whether the US economy added 165,000 in non-farm payrolls as excepted.The market reaction will be interesting given how the result will affect the Federal Reserve's potential 'exit strategy' from stimulus measures."As we enter the final day of this historic week, the global forex and indices markets have reached a crescendo of volatility ahead of today's non-farm-payroll decision," said Research Analyst Joshua Mahony from Alpari."The ability of markets to sufficiently rally as a means to reverse the recent downturn in the equity markets has come under increased scrutiny as the appearance of any marginal rally has been seen as a level to short the markets. Previous attempts to buy on the dips has now been replaced by a sell on the peaks policy amongst traders."Stocks to watchNatural gas giant BG Group has announced that a third floating production, storage and offloading (FPSO) vessel has come on stream offshore Brazil in the pre-salt Santos Basin, key to the firm meeting its full-year targets. Chris Finlayson, BG's Chief Executive Officer, said that the start of production from the Cidade de Paraty FPSO "marks another important success in delivering our 2013 milestones".Public services outsourcing group Serco has won the contract to operate and maintain toll roads in Hong Kong as it looks to push further into the transport sector. Beginning in September, the contract is worth HK$960m (£79.3m) over a minimum six-year base period to manage, operate and maintain the Tsing Sha Control Area of toll roads. Property developer Bellway has said that it has made an "encouraging" start to its second half as it is seeing strong demand for new homes. "Wider accessibility to affordable, higher loan to value mortgages has led to visitor numbers and reservations being ahead of expectations and these have been further enhanced by an increase in the number of active sales outlets," the firm said.