US non-farm payrolls are forecast to rise by 150,000 after a 200,000 increase in December, with the unemployment rate seen static at 8.5 per cent.
Other US data due today includes January’s non-manufacturing ISM report, and December factory orders and revised durable goods orders, all scheduled for 1500 GMT.
The UK blue chip index closed 5.35 points, or 0.1 per cent higher yesterday at 5,796.07, with strength in miners on sector consolidation moves countering some disappointing corporate results for the likes of AstraZeneca and Royal Dutch Shell.
“Maybe a bullish US jobs report will ignite the next rally, but if it doesn’t then look for the FTSE to revisit the recent bottom at 5,651.60 over the near-term. A new high on low volume is not the best way to form a bull market. As long as volatility and volume remain below average be careful trading the long side,” said James A. Hyerczyk, analyst at Autochartist.
US blue chips slipped 0.1 per cent yesterday as investors largely took a wait-and-see approach ahead of the key employment report, although optimism over the US labour market was reinforced as new claims for weekly jobless benefits dropped more than expected in the latest week.
Asian shares fell today as investors sat tight ahead of the US jobs data, and as debt restructuring talks between Greece and its creditors dragged on.
Greece has kept hopes of a debt deal alive all this week but has pushed back the actual debt swap agreement needed to secure a crucial second batch of funds to prevent Athens from defaulting.
Euro zone finance ministers aim to agree a second financing package for Greece on Monday. A deal for Greece would include agreement on official new financing, the size of voluntary losses banks and other private bondholders are willing to accept and new reforms Athens must undertake.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent, off a five-month high hit yesterday, but looked set to record a fifth successive weekly gain. Japan’s Nikkei average fell 0.5 per cent.
The latest economic data from China showed the official Purchasing Managers Index for non-manufacturing sectors dipping to 52.9 in January from 56.0 in December, providing a further case for policy easing to support growth.
On the domestic data front, January’s Market/CIPS British services PMI report will be released at 0928 GMT, with a reading of 53.5 forecast, down from 54.0 in December.
UK stocks to watch today are:
BT Group
The telecoms provider posts third-quarter results.
Also, “ultra-fast” broadband using direct fibre-optic connections will become available to most British homes and businesses next year, after a significant technological breakthrough by BT, the Financial Times said.
Barclays
The lender is set to announce plans to cut pay and bonuses for the 24,000 staff in its investment banking arm by up to 30 per cent, according to a Bloomberg report citing two people with knowledge of the talks.
Hays
The UK-listed recruitment firm is the subject of revived bid talk with traders hearing that Swiss group Adecco could be lining up a £2.1 billion (RM10.03 billion), or 150 pence-a-share, cash bid for the company, according to the Daily Mail market report.
Electrocomponents
The electronic components distributor issues a trading update.
Investec
The stockbroker issues a trading update. — Reuters
