LONDON MARKET EARLY CALL: Stocks Set To Rebound Following Sell Off

LONDON (Alliance News) - Stock prices in London are seen opening higher on Friday, rebounding ...

Alliance News 7 December, 2018 | 7:06AM
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LONDON (Alliance News) - Stock prices in London are seen opening higher on Friday, rebounding from sharp losses on Thursday, after Wall Street recovered ground toward the US close and Asian markets have followed up with gains on Friday.

IG futures indicate the FTSE 100 index is to open up 78.75 points at 6,782.80. The blue chip index closed down 3.2% on Thursday at 6,704.05, its lowest level in two years.

In New York on Thursday, the Dow Jones Industrial Average ended down just 0.3% and the S&P 500 down 0.2%. The Nasdaq Composite gained, rising 0.4%.

The Japanese Nikkei 225 index closed up 0.8% on Friday. In China, the Shanghai Composite is down 0.1%, while the Hang Seng index in Hong Kong is flat.

On Thursday, Wall Street initially followed other global markets lower, after the arrest of a top executive at Chinese tech giant Huawei rekindled US-China trade worries. However, New York ended well off the day's lows after reports that the Federal Reserve may consider slowing the pace of US interest rate increases.

Citing recent interviews and public statements, the Wall Street Journal said Fed officials still think interest rates will move broadly higher in 2019, but they are becoming "less sure how fast they will need to act or how far they will need to go".

The closely watched US jobs report for November will be released at 1330 GMT. The economy is expected to have added 199,000 jobs with a jobless rate of 3.7%.

"Yesterday's sharp US rebound off the lows should get the European session today off to a positive start, as investors look towards today's US payrolls report," noted CMC Markets chief market analyst Michael Hewson.

The pound was quoted at USD1.2765, unchanged from the London equities close Thursday.

In political news, Prime Minister Theresa May will deploy government ministers to sell her Brexit deal around the UK on Friday after Tory backbenchers handed her a possible lifeline to get it through Parliament.

Senior Cabinet ministers, including Chancellor Philip Hammond and Health Secretary Matt Hancock, are among those who will make another late push to garner support for May's Withdrawal Agreement ahead of Tuesday's vote.

The move is likely to be seen as a bid to bolster flagging support for May ahead of a crunch Commons vote on her EU withdrawal deal next Tuesday - a showdown the PM made clear on Thursday morning she would not postpone.

But it remains to be seen whether it goes far enough to win over enough Tory Brexiteers to get the deal through the Commons.

The alteration would mean Parliament would have to approve a decision to trigger the backstop arrangement or extend the transition period beyond December 2020.

The economic events calendar on Friday has Germany industrial production data at 0700 GMT, UK Halifax house price index readings at 0830 GMT and eurozone GDP figures at 1000 GMT.

The UK corporate calendar on Friday has half-year results from housebuilder Berkeley Group and trading statements from commercial flooring maker James Halstead and from motor finance lender S&U.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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