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LONDON MARKET EARLY CALL: FTSE to rise; no New York "positive vibes"

1st Nov 2024 06:51

(Alliance News) - Stocks in London are set to open a touch higher on Friday, clawing back a fraction of some post-UK budget weakness, and shaking off a slump in US tech shares overnight.

It has nonetheless been a tough week for London's flagship FTSE 100. It is down 1.7% so far.

Focus on Friday will be on a US jobs report in the afternoon, which comes ahead of the next Federal Reserve decision.

IG says futures indicate the FTSE 100 to open 8.2 points higher, 0.1%, at 8,118.30 on Friday. The index of London large-caps closed 49.53 points, 0.6%, at 8,110.10 on Thursday.

The pound was quoted at USD1.2894 early Friday, rising from USD1.2870 at the London equities close on Thursday. It had traded above the USD1.30 mark before Wednesday's budget announcement, however.

The euro stood at USD1.0872, up from USD1.0859 at the European equities close on Thursday. Against the yen, the dollar was trading at JPY152.48, largely unmoved from JPY152.45.

In the US on Thursday, Wall Street ended sharply lower, with the Dow Jones Industrial Average down 0.9%, the S&P 500 slumping 1.9% and the Nasdaq Composite plunging 2.8%.

SPI Asset Management Stephen Innes commented: "After the S&P and Nasdaq logged their sharpest one-day losses in two months, don't count on Wall Street sending over any positive vibes.

"The not-so-affectionately dubbed "bond vigilantes" are back in action, flexing their muscles and driving yields higher across the developed markets.These hawkish bond enforcers aren't just making waves; they're sending a clear, no-nonsense message to what they view as spend-happy governments: fiscal discipline is overdue. With steely resolve, they're calling the shots, reminding policymakers that the days of freewheeling spending may be on borrowed time."

Apple fell 1.9% in extended trading. It reported a decline in annual profit as the iPhone maker saw fourth quarter sales fall ahead of the key holiday sales season.

The Cupertino, California-based technology company said net income in its fourth quarter ended September 28 fell 36% to USD14.74 from USD22.96 billion a year prior. Diluted earnings per share fell to USD0.97 from USD1.46.

Net sales were USD94.93 billion in the quarter, up 5.4% from USD89.50 billion.

Fourth quarter results beat the CNBC-cited LSEG consensus of USD94.58 billion in sales, though were well shy of EPS consensus for USD1.60.

In Asia on Friday, Tokyo's Nikkei 225 tumbled 2.6%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney lost 0.5%.

ActivTrades analyst Anderson Alves commented: "Looking ahead, traders will be closely watching the US nonfarm payroll report, with October's job growth expected to decelerate sharply from September's 254,000, influenced by strike disruptions and possible hurricane impacts.

According to FXStreet cited consensus, the US labour market is expected to have added 115,000 jobs in October, down from 254,000 in September.

"An upside surprise, coupled with a lower unemployment rate and stable or higher wages, could increase volatility in short-term rate pricing ahead of next week's FOMC decision. This may lead markets to anticipate the Fed skipping the projected 25 bps rate cut, which could bolster the USD and US yields, putting further pressure on risk assets," Alves continued.

Brent oil was quoted at USD73.97 a barrel early Friday, rising from USD72.67 at the time of the London equities close on Thursday. Gold was quoted at USD2,753.09 an ounce, up from USD2,742.90.

Friday's economic calendar has a UK manufacturing purchasing managers' index reading at 0930 GMT, before the US jobs data at 1230.

By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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