(Alliance News) - Stocks in London are set to open a touch higher on Monday, after a positive session in Asia, while investors look ahead to the latest services PMI readings.

IG says futures indicate the FTSE 100 to open up 8.7 points, 0.1%, at 7,426.43 on Monday. The index of London large-caps closed down 28.80 points, 0.4%, at 7,417.73 on Friday.

In Asia on Monday, the Nikkei 225 index in Tokyo closed up 2.4%. In China, the Shanghai Composite was up 0.8%, while the Hang Seng index in Hong Kong was up 1.6%. The S&P/ASX 200 in Sydney closed up 0.3%.

Friday's US jobs print has stoked hopes that interest rates have reached their peak, as it showed a cooling in the labour market. The US economy added fewer jobs than expected in October and the unemployment rate edged higher.

"[The report] may have arguably the perfect elixir for a market that needed to shake off a two-month equity market hangover," said SPI Asset Management's Stephen Innes.

"Market sentiment has increasingly aligned with the belief that the Federal Reserve has completed its rate hiking cycle. This expectation shift has led to a significant reduction in the rate hike premium for the December and January meetings," Innes continued.

In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.9% and the Nasdaq Composite up 1.4%.

The dollar had retreated sharply after the data, and largely remained weak against major currencies early Monday.

Sterling was quoted at USD1.2381 early Monday, higher than USD1.2369 at the London equities close on Friday. The euro traded at USD1.0737, edging up from USD1.0730. Against the yen, the dollar was quoted at JPY149.54, rising versus JPY149.37.

Gold was quoted at USD1,984.59 an ounce early Monday, lower than USD1,990.11 on Friday.

Brent oil was trading at USD85.22 a barrel, down from USD86.44.

In Monday's UK corporate calendar, there are half-year results from budget airline Ryanair, as well as a trading statement from building materials supplier Kingspan.

The economic calendar for Monday has a slew of services PMIs from the EU, Germany and the US. On Tuesday, there is the UK Halifax house price index at 0700 GMT.

By Elizabeth Winter, Alliance News senior markets reporter

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