Market update: FTSE 100 steady ahead of jobs report, upgrade boosts Phoenix
10:02 , Graeme EvansWeaker defence stocks and caution ahead of a key report on the US labour market today slowed the advance of the FTSE 100 index towards record territory.
The top flight surrendered an initial gain of 0.2% to stand just 3.80 points higher at 8814.84, in line with the performance of leading European benchmarks.
A move by the FTSE 100 towards the record close of 8871 set in March is likely to depend on the outcome of this afternoon’s US non-farm payrolls report.
Economists expect a three-month low of around 125,000 jobs, down from the growth of 177,000 in April. The unemployment rate is set to stay at 4.2%.
US markets closed lower last night, with Tesla shares down 14% amid the feud between the car maker’s boss Elon Musk and President Trump.
Richard Hunter, head of markets at Interactive Investor, said “Stocks endured a torrid session on Wall Street, with more verbal volleys from the White House adding to growing concerns over the strength of the domestic economy.”
In a quiet session for corporate updates, the FTSE 100 risers board was led by Standard Life business Phoenix after Deutsche Bank upgraded its recommendation on the stock to Buy.
Alongside a new target price of 720p, the switch helped Phoenix to rise 2% or 11.5p to 655p. A similar move in support of Prudential after the bank upped its fair value estimate to 1000p helped the Asia-focused insurer to rally 8.2p to 876.6p.
Other risers included Mexico-based miner Fresnillo, which added another 20p to 1345p after the price of silver traded at its highest level since 2012.
On the fallers board, defence stocks lost ground after their recent strong run as Babcock International reversed 31p to 1074p and BAE Systems eased 22p to 1960p.
The FTSE 250 index drifted 13.32 points to 21,056.06, with Dr Martens and B&M European Value Retail the best performing mid-cap stocks after gains of 4%.
FTSE 100 maintains progress as oil giants rally
08:31 , Graeme EvansThe FTSE 100 index has continued its recent run of modest gains, lifting by another 0.2% or 15.91 points to 8826.95. The record close level is 8871.
The performance benefited from stronger BP and Shell shares, with the oil giants up 0.5% on the prospect that the price of Brent Crude will end the week 4% higher.
Vodafone rose 0.6p to 74.1p, SSE lifted 27p to 1763p and Tesco improved 1.6p to 388.9p as attention turns to the supermarket giant’s trading update next week.
On the fallers board, LexisNexis business RELX is down 37p to 3942p and financial data business Experian 31p lower at 3779p
The FTSE 250 index is 5.03 points higher at 21,074.41, with Aston Martin Lagonda among the best performing mid-caps after a rise of 3% or 2.15p to 83.5p.
US payrolls figure set for sharp decline
07:49 , Graeme EvansUS jobs data will have the potential to move markets later, with investors braced for the smallest rise in non-farm payrolls in three months.
Deutsche Bank economists forecast a figure of around 125,000, down from the 177,000 in April with the unemployment rate remaining at 4.2%.
Julien Lafargue, chief market strategist at Barclays Private Bank, points out the release follows some “rather disappointing” economic updates earlier this week.
He added: “Anything below the 100,000 mark could reignite recession fears while a stronger-than-expected print could perversely be negative for risk assets as it would likely put upward pressure on yields.
“Beyond the headline payroll number, the unemployment rate - which is expected to remain stable at 4.2% - will be a very important variable that could either help soften the blow or add fuel to the fire.”
HSBC chair makes AIA switch
07:33 , Graeme EvansOutgoing HSBC chair Mark Tucker is to lead the board of AIA, the Asia-based insurer he previously served as chair executive between 2010 and 2017.
He will leave HSBC at the end of September, having previously announced his intention to stand down before the end of 2025. His new role as AIA chair starts on 1 October.
With the process to select the permanent HSBC chair ongoing, non-executive director Brendan Nelson has been named interim group chair from October.
House prices dipped in May, annual growth of 2.5%
07:13 , Graeme EvansAverage UK house prices fell by 0.4% in May – a drop of around £1150 – following a modest rise in April.
Over the past 12 months, mortgage lender Halifax said prices have grown by 2.5%, adding just over £7,000 to the value of a typical home at £296,648.
This compares with 3.2% in April, with average prices down by 0.2% since the start of the year.
Halifax head of mortgages Amanda Bryden said: “The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.”
“The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends.
“Despite ongoing pressure on household finances and a still-uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.”
FTSE 100 set to consolidate gains, Tesla shares slide
07:02 , Graeme EvansUS stocks closed lower last night, with Tesla shares down 14% amid the feud between the car maker’s boss Elon Musk and President Trump.
The S&P 500 index fell 0.5% and the Dow Jones Industrial Average reversed by 0.3%, while the tech-focused Nasdaq Composite lost 0.8%.
Wall Street’s weaker performance was driven by caution ahead of this afternoon’s closely-watched non-farm payrolls report.
Asia markets have posted a mixed performance, despite the positive tone of President Trump’s phone call with Chinese counterpart Xi Jingping.
The FTSE 100 index lifted 9.75 points to its second highest ever close of 8811.04 but is expected to open slightly lower at today’s opening bell.
Derren Nathan, Hargreaves Lansdown head of equity research, said: “World markets remain at close to all-time highs, despite the reality of higher tariffs and diminishing confidence for both businesses and consumers.
“So, it’s little surprise investors are taking their foot off the gas.”
