(Alliance News) - Stock prices in London are set to open higher on Friday, as investors await employment data in the US amid that country's trade war with China.
IG futures indicate the FTSE 100 index is to open 15.7 points higher at 7,153.55. The blue-chip index closed off 50.65 points, or 0.7%, at 7,137.85. on Thursday.
China said on Friday it will offer a tariff waiver to "some" imports of US soybean and pork, in the latest sign of easing trade tensions between Beijing and Washington. The two sides are working towards a partial deal that includes a promise to increase the purchase of US farm produce.
However, attention will remain on US non-farm payrolls due to be released at 1330 GMT.
The US jobs report comes two days after payroll processor ADP reported US private sector employment increased less than expected, figures Michael Hewson at CMC Markets UK described as "weak".
"The main event is the US jobs report for November. Employment in October was quite strong, both when looking at the upward revisions of the previous months and the fact the strike at General Motors pulled the headline down by nearly 50,000 workers," commented analysts at Danske Bank, adding markets remain in "wait-and-see mode".
"Soft indicators are showing a weakening in employment growth, but the headline is likely to be strong, as the striking workers have returned to work. We estimate non-farm payrolls rose 200,000 in November, suggesting underlying growth of around 150,000."
In the US on Thursday, Wall Street ended just about higher, with the Dow Jones Industrial Average closing 0.1% up, the S&P 500 up 0.2%, and the Nasdaq Composite marginally higher.
The Japanese Nikkei 225 index closed up 0.2% on Friday. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong is 1.0% higher.
In UK corporate news on Friday, construction firm Berkeley Group reported a 31% fall in pretax profit for the six months to September to GBP276.7 million, with revenue down 44% to GBP930.9 million.
However, Berkeley said this profit drop was expected and simply represents profitability returning to normal levels. The decline was due to a number of central London projects finishing during the half.
Berkeley said it was a "good" start to the year. It is on track to deliver GBP3.3 billion of pretax profit in the six years to 2025, and also on track to return GBP280 million per year in the same period.
Insurance services provider Phoenix Group has agreed a deal to buy ReAssure Group, which is part of Swiss Re, for GBP3.25 billion.
Phoenix will pay Swiss Re GBP1.2 billion in cash, as well as shares which will lead to the Swiss firm holding a 13% to 17% stake in Phoenix. Another ReAssure shareholder, MS&AD Insurance, will get an 11% to 15% stake in Phoenix.
Phoenix said the deal will add GBP84 billion of assets under administration and 4.1 million policies, and will generate additional cash flows of GBP7.0 billion "over time".
Associated British Foods said its Sugar business will benefit "materially" from a rise in prices and reduced costs in its year ending September 2020, with the Grocery unit set for "strong" profit and margin growth.
Primark has a solid pipeline of new sites, AB Foods continued, with the margin to reduce "only" a small amount year-on-year.
Speaking at the company's annual general meeting Friday, Chair Michael McLintock said the firm continues to expect adjusted earnings per share growth in its new financial year.
The UK Competition & Markets Authority has accepted remedies put forward by FirstGroup and partner Trenitalia, after the regulator expressed competition concerns on 21 routes in the West Coast rail franchise. The franchise can now be awarded without the need for a phase two investigation, it said.
The CMA also has found Stonegate Pub Co's GBP3 billion deal for Ei Group does not create competition concerns on a UK-wide basis. However, it has identified competition concerns in 51 local areas, and has now demanded the two suggest measures to overcome these concerns. If they do not, the CMA will launch a phase two investigation.
UK Prime Minister Boris Johnson will face the leader of the opposition, Jeremy Corbyn, in a head-to-head debate later, after he was berated by broadcaster Andrew Neil for refusing to do an interview on his BBC show.
Neil said if the prime minister is expected to face the likes of Donald Trump and Vladimir Putin then he should be able to sit down for a half-hour interview with him.
Johnson has been accused of "running scared" from scrutiny by avoiding in-depth questioning from the veteran journalist, even though rival leaders, including Corbyn, have taken part.
The prime minister, who has also refused to do an interview on ITV, will debate Corbyn on the BBC on Friday night, with less than a week to polling day.
Elsewhere in the UK, high street retailers suffered a lacklustre November in the critical build-up to Christmas as shoppers held off on spending ahead of Black Friday, figures show.
In-store sales declined by 1.9% year-on-year in November from an already negative base of minus 2.6%, according to BDO's High Street Sales Tracker.
Figures across the month suggest discounting has become increasingly important for driving consumer spending, with retailers experiencing a lacklustre month before a substantial increase in sales the week of Black Friday.
Black Friday took place a week later this year, distorting year-on-year figures, but BDO said in-store like-for-like sales were down 17% on the same week last year – one of the worst weekly results since the "Beast from the East" hit Britain last March.
The pound was quoted at USD1.3154 early Friday, up slightly from USD1.3150 late Thursday, trading at eight-month highs, as investors bet on a Conservative win in the general election next week.
The UK economic calendar has the Halifax house price index at 0830 GMT.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
