London pre-open: Small rebound expected ahead of US jobs report

6th Dec 2013 07:37

Markets are expected to open slightly higher on Friday morning, rebounding after recent losses which have sent the FTSE 100 to an eight-week low, as investors look ahead to some key economic data out from the States this afternoon.City sources predict the FTSE 100 will open up around 13 points lower than yesterday's close of 6,498.33.Stocks have fallen for five straight days on the back of heightened speculation that the Federal Reserve will soon begin to pare its asset purchase programme amid signs of a stronger economic recovery.In particular, data released during yesterday's session showed a sharp drop in jobless claims, an upwards revision to third-quarter US economic growth and a less-than-expected decline in factory orders."In recent weeks we have seen a string of good economic data from the US which could suggest we are edging closer to Fed tapering," said Lee Mumford, Financial Sales Trader at Spreadex.Meanwhile, comments from regional Fed bank presidents continue to be closely watched ahead of the central bank's policy meeting on December 17-18th. Dennis Lockhart of the Atlanta Fed said on Thursday that "consideration" of tapering should be "on the table" at the Fed's meeting later this month.The remarks come ahead of the official jobs report this afternoon, which will likely be a key factor in the Fed's decision. The data is expected to reveal a 183,000 increase in non-farm payrolls for November, below the 204,000 gain in October, though the unemployment rate is forecast to fall from 7.3% to 7.2%.Stocks to watchAMEC has scored a contract with Kuwait National Petroleum Company to provide engineering and project management services for oil refineries in Kuwait. Under the £158m five-year contract, AMEC will be responsible for services on the Mina Al Ahmadi, Mina Abdullah and Shuaiba oil refineries.Biopharmaceutical company Shire has announced "top line results" from a clinical trial of Lifitegrast for the treatment of adults with dry eye disease. The Phase 3 efficacy and safety study of the solution was tested on patients who showed improvement in symptoms.Sector peer AstraZeneca has announced that the European Commission (EC) has granted marketing authorisation to its nasally administered four-strain flu vaccine Fluenz Tetra. The vaccine, aimed for the prevention of influenza in children and adolescents from 24 months to 18 years of age, is the first and only intra-nasal four-strain influenza vaccine available in Europe.BC