London pre-open: Strong start expected as eyes turn to US jobs data

5th Jul 2013 07:32

With Wall Street reopening after the Independence Day holiday, Friday is expected to be an interesting day for financial markets as investors gear up for the all-important US jobs report due out this afternoon.The FTSE 100 is expected to build on its massive gains the day before, after jumping 3.1% on the back of dovish comments by the Bank of England and European Central Bank, as policymakers sought to give more forward guidance on interest rates.City sources predict the FTSE 100 will open up around 30 points from yesterday's close of 6,422.All eyes today will be on the Labor Department's employment report for June, with US non-farm payrolls expected to rise by 165,000, down from the 175,000 gain in May. The jobless rate however is expected to fall from 7.6% to 7.5%, according to consensus estimates."With US jobs data due for release at 13:30 BST today, volumes will no doubt be on the light side. However, it is fair to say that the outlook for global economic prospects is far more encouraging than at the end of last week," said Max Cohen, a Financial Sales Trader from Spreadex."[...] it would seem that today's US jobs data will prove to be another sign that the US economy is on the right track towards recovery. Market participants will be wise to err on the side of caution as the data could be interpreted in several ways. Whilst a strong figure could be bullish, it could be seen as a means to further justify the withdrawal of its asset-buying programme."Stocks to watchBritish Land has acquired a majority of Paddington Central, a, 11-acre mixed use estate in London's West End. The property comprises seven modern buildings and a retail and leisure cluster, totalling 1.2m sq ft.Oil and gas group Afren has acquired a further interest in First Hydrocarbon Nigeria (FHN), increasing its share in a compelling portfolio of assets onshore. The firm has bought a 23.3% stake for $105.4m from and entered into a put/call option to buy a further 12.5%.Balfour Beatty has won a £121m contract to build an eco-friendly hotel in the North Greenwich peninsula in London with VIP access to the O2 arena.