(Alliance News) - Stock prices in London opened mixed, as less-than-positive local economic data unnerved investors ahead of a critical US jobs print.
The FTSE 100 index opened up 4.63 points, or 0.1%, at 7,001.90. The FTSE 250 opened down 58.88 points, or 0.3%, at 17,573.76 and the AIM All-Share opened up 0.22 of a point at 816.42.
The Cboe UK 100 opened down 0.7% at 699.09, the Cboe UK 250 opened up 0.3% at 15,029.74, and the Cboe Small Companies opened down 0.7% at 12,680.90.
In European equities on Friday morning, the CAC 40 in Paris opened up 0.1%, while the DAX 40 in Frankfurt opened down 0.2%.
Investors will have a keen eye on the key US nonfarm payrolls print, due in at 13.30 BST.
"The US labour market report will as usual be seen as a key bellwether of economic conditions...A report close to expectations will probably be seen as raising the odds of a 75bp rise, while a below par one will fuel bets on a smaller hike. It would also boost expectations that US rates may be a close to a peak even though recent comments from Fed officials have provided no support for that view," explained Lloyds Bank.
Hawkish comments from the Federal Reserve from Thursday drove stocks lower, with no sign the bank would back down on its rate hiking agenda.
Federal Reserve board member Lisa Cook said restoring price stability in the US will likely "require ongoing rate hikes" and a period of restrictive policy.
"Inflation remains stubbornly and unacceptably high, and data over the past few months show that inflationary pressures remain broad-based," said Cook, speaking at the Peterson Institute for International Economics think tank.
"In the meantime, rising oil prices have reignited some inflationary concerns, which could add another reason for the Fed to stay on course," said interactive investor's Richard Hunter.
Brent oil remained high, quoted at USD94.54 a barrel at the London equities open Friday, up from USD94.30 late Thursday.
The pound was quoted at USD1.1157 at the London equities open Friday, down compared to USD1.1191 at the close on Thursday.
Meanwhile in the UK, the day's economic data set a gloomy mood. UK house prices fell 0.1% in the month, compared to a 0.3% rise in August, according to the Halifax house price index. The cost of a typical home was GBP293,835, edging down from August's record high of GBP293,992.
The decline was unexpected, with FXStreet-cited consensus predicting growth of 0.5%.
Annually, prices rose 9.9%, slowing from 11.4% annual growth seen in August. This was slightly ahead of consensus which had expected 9.8%.
"The events of the last few weeks have led to greater economic uncertainty, however in reality house prices have been largely flat since June, up by around GBP250. This compares to a rise of more than GBP10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth," said Kim Kinnaird, Halifax Mortgage director.
In addition, nationwide retail figures pointed to a slowdown, with September recording the slowest retail sales growth since shops reopened post-Covid. This was due to a combination of inflation, economic crisis and an unexpected bank holiday.
"From a business standpoint, those seeing weaker trading have a double whammy of margin jeopardy. The weakened pound means shops that import a lot of their stock are paying more for these products, which chips away further at profits," said Hargreaves Lansdown analyst Sophie Lund-Yates.
The euro stood at USD0.9797 Friday, down against USD0.9837 late Thursday.
Against the yen, the dollar was trading at JPY145.01, higher compared to JPY144.81.
In London, FTSE 250-listed construction manufacturer Marshalls plunged 26%.
Revenue for the nine months to September 30 was GBP544 million, rising 20% year-on-year from GBP453 million.
However, it now predicts outturn will be slightly below the bottom end of the current range of market expectations for its full year. Consensus stands at GBP98.5 million, within a range of GBP95.1 million to GBP101.0 million.
This is due to the "combined impact of the accelerated rate of revenue contraction in Marshalls Landscape Products in the third quarter and the reduction in efficiency resulting from lower manufacturing output in this reporting segment", it explained.
JD Wetherspoon added 5.8%.
Revenue in the 52 weeks to July 31 came in at GBP1.74 billion compared to GBP772.6 million year-on-year, the pub chain said.
Pretax loss before exceptional items narrowed substantially to GBP30.4 million from GBP167.2 million in the year prior. Operating costs jumped to GBP1.7 billion from GBP872.9 million.
It declared neither a dividend nor share buybacks, unchanged from the previous year.
It warned firm predictions about its financial performance are difficult to make, owing to rising costs of labour and repairs, but it is "cautiously optimistic". "Perhaps the biggest threat to the hospitality industry is the possibility of further lockdowns and restrictions," it said.
On AIM, Abingdon Health gained 7.7%. The rapid test manufacturer expects a judgement in relation to the Judicial Review against the Department of Health & Social Care at noon on Friday. It is an interested party in the case.
In Asia on Friday, the Japanese Nikkei 225 index closed down 0.7%. In China, the Shanghai Composite was closed as National Day Golden Week continues, while the Hang Seng index in Hong Kong was down 1.3% in late trade. The S&P/ASX 200 in Sydney closed down 0.8%.
Gold was quoted at USD1,710.83 an ounce Friday down against USD1,712.13 Thursday.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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