London Stocks Seen Lower as Caution Dominates Ahead of U.S. Jobs Report

London Stocks Seen Opening Lower

0749 GMT - The FTSE 100 index is expected to open 22.7 points lower, according to IG, having closed Thursday at 7279.91, tracking falls in Asian stocks. Caution is likely ahead of U.S. non-farm payrolls data, while U.K. stocks are likely to retrace some of Thursday's gains after the Bank of England unexpectedly left interest rates unchanged, failing to raise them as most had expected. Evidence of a resurgence in the U.S. jobs market could spark speculation about further U.S. monetary tightening, IG says. "Despite the FOMC having kick-started the tapering process this week, traders will begin to question when rates will begin to rise," IG says. ([e-mail])

 
Companies News: 

IAG 3Q Operating Loss Narrowed

International Consolidated Airlines Group S.A. said Friday that its third-quarter operating loss narrowed as revenue rose, and that it is planning for a return to profitability in 2022.

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U.K. Regulator Partially Clears Pennon's Acquisition of Bristol Water

The U.K. Competition and Markets Authority said Friday that it won't refer Pennon Group PLC's acquisition of Bristol Water Holdings UK Ltd. for a further review under the Enterprise Act 2002.

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Morgan Advanced Materials Expects 2021 Sales Growth at Top End of Guidance

Morgan Advanced Materials PLC said on Friday that sales for the first nine months of the year rose 8.9% on an organic constant-currency basis, and that it expects 2021 organic constant-currency growth to be around the top end of its previous guidance range of 7% to 9%.

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4imprint's FY Earnings Seen in Line with Views Despite Supply Chain Challenges

4imprint Group PLC said Friday that its full-year performance will be in line with expectations despite supply chain issues, adding that weekly order totals have been above 2019 levels in the second half of fiscal 2022.

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Simigon Studies Goldstein Real Estates and Investment's AGM-Resolutions Claim

Simigon Ltd. said Friday that it is studying a legal claim filed against the company by D.D Goldstein Real Estates and Investment Ltd.

 
Market Talk: 

Pound Could Reverse Post-BOE Losses, But Gains Look Limited Over Medium Term

1717 GMT - Sterling should recover in the coming months as the Bank of England looks set to raise interest rates, Monex Europe says. The prospect of a rate rise will leave BOE on the "hawkish side of the spectrum" relative to other G10 central banks, resulting in front-end rates spreads supporting GBP/USD, Monex forex analyst Simon Harvey says. "However, the ceiling to the U.K. two-year gilt [yields] curve given the speedbumps to the Bank Rate in the near-term suggests that GBP/USD will struggle climbing substantially above the 1.40 handle in the medium-term without a material upgrade to the Bank's economic outlook," Harvey says. GBP/USD falls 1.4% to 1.3497. The BOE left its key rate at 0.1% on Thursday, against expectations for a rise. ([e-mail])

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(END) Dow Jones Newswires

11-05-21 0410ET