6th Jan 2023 12:00
(Alliance News) - Stock prices in London were mixed at midday on Friday as eyes fixed firmly on the release of keenly awaited US jobs data later this afternoon.
"US jobs numbers will take centre stage later today and any signs that the labour market remains strong could put markets in a spin as it would further reduce the chances of the Federal Reserve pausing rate hikes or even cutting them," said Russ Mould at AJ Bell.
The FTSE 100 index was up 18.92 points, or 0.3%, at 7,652.37. The FTSE 250 was down 51.15 points, or 0.3%, at 19,412.28, while the AIM All-Share was marginally higher, up 0.30 of a point at 844.04.
The Cboe UK 100 was up 0.1% at 765.64, the Cboe UK 250 was down 0.4% at 16,915.08, and the Cboe Small Companies was up 0.1% at 16,915.08.
The US will publish non-farm payrolls at 1330 GMT ahead of an ISM services PMI print at 1500 GMT.
Investors are hoping that the data may help provide further hints for the future moves of the US Federal Reserve. This because the Fed has indicated previously its monetary policy relies heavily on changes in the the labour market, in addition to inflation.
Stocks in New York were set for a tepid open ahead of the economic data. The Dow Jones Industrial Average is called up 0.2%, the S&P 500 index up 0.1%, and the Nasdaq Composite down 0.1%.
In London, Clarkson remained the FTSE 250's best performer, up 3.0% at midday.
The shipping services provider announced strong fourth-quarter trading, particularly from its Broking division, and, as a result, said it now expected its full-year performance to be ahead of current market expectations.
Clarkson said 2022 underlying pretax profit was at least GBP98 million. This is up 41% from GBP69.4 million in 2021.
Essentra plunged 9.6% as it reported its business saw a slower period of economic growth in 2022 as a result of toughening market headwinds.
This, coupled with a strong comparative for its final quarter, saw the firm's LFL trading day adjusted sales fall by 3.0% compared with the year prior.
Nanoco jumped 38%. The quantum dot developer said that it has agreed a term sheet for a no-fault settlement with Korean electronics firm Samsung.
Nanoco had claimed that Samsung infringed on its unique synthesis and resin capabilities for quantum dots.
Quantum dot technology is used on Samsung QLED televisions. QLED stands for quantum light-emitting diode.
The two firms now have 30 days to agree the terms of a binding agreement. They have jointly requested a stay to the trial that was scheduled on Friday in order to allow time for this agreement to be finalised.
Topps Tiles fell 1.9%. The tile seller urged its shareholders to vote down measures that major shareholder MS Galleon has requisitioned at its annual general meeting.
These resolutions request that Chair Darren Sharpland be removed from office, and that Lidia Wolfinger and Michal Martusiak be appointed as non-executive directors.
Wolfinger and Bartusiak are both employees of companies owned by MS Galleon. MS Galleon currently holds 30% of Topps Tiles.
Topps Tiles explained it had become aware that MS Galleon has been contacting some of its shareholders individually with information which contradicts previous statements made to Topps Tiles about the link between sourcing and MS Galleon's interest in the firm.
Topps Tiles also said it believes MS Galleon may be preparing to launch its Nexterio tile retail brand in the UK, establishing a competitor to Topps Tiles and thus creating a "further material conflict of interest" around sourcing.
In European equities on Friday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was marginally lower.
Eurozone annual inflation is expected to have eased in December, data released by Eurostat showed.
According to Eurostat, the flash estimate for harmonised index of consumer prices in December is 9.2%, slowing from 10.1% in November. This came in below FXStreet-cited consensus of 9.7%.
The euro stood at USD1.0500 at midday on Friday, lower against USD1.0525 at the close on Thursday.
Against the yen, the dollar was trading at JPY134.42, higher compared to JPY133.89. The pound was quoted at USD1.1849, lower compared to USD1.1890.
UK construction activity fell in December for the first time in over a year as new orders declined, data from S&P Global showed.
The construction purchasing managers' index fell to 48.4 in December, down from 50.4 in November.
December's reading ended a three-month sequence of growth, and represented the fastest rate of decline since May 2020. It was also the first contraction in construction sector output since last August.
Brent oil was quoted at USD78.53 a barrel at midday in London on Friday, up from USD78.48 late Thursday. Gold was quoted at USD1,836.83 an ounce, sharply higher against USD1,828.35.
Still to come on Friday's economic calendar, aside from the US jobs data, there are also US factory orders and an ISM services PMI print at 1500 GMT.
By Heather Rydings, Alliance News senior economics reporter
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