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London open: Stocks edge lower ahead of jobs data
London stocks edged lower in early trade on Wednesday as investors eyed the release of the latest UK jobs data.
At 0835 GMT, the FTSE 100 was down 0.3% to 7,392.94, while the pound was flat against the euro at 1.1154 and up 0.1% versus the dollar at 1.3181.
Spreadex analyst Connor Campbell said: “In part two of the week’s three-pronged investigation into ‘just how bad do UK consumers have it?’ the markets gets a look at the latest round of jobs data.
“With inflation at a five-year high of 3.0% in both September and October, it’s more than likely that this Wednesday’s figures are going to show an increase in the already ugly gap in real wages.”
For the three months to the end of September, wage growth (including bonuses) is forecast to fall from 2.2% to 2.1%, a drop that Campbell said “only exacerbates the python-like inflationary squeeze currently being put on people’s wallets”.
Meanwhile, the claimant count change is set to jump from 1.7k to 2.0k month-on-month, with the unemployment rate unchanged at 4.3%.
The unemployment rate, claimant count and average earnings are all due at 0930 GMT. In addition, Bank of England economist Andy Haldane is scheduled to make a speech at 1000 GMT, with fellow monetary policy committee member Ben Broadbent also speaking three hours later.
Heavily-weighted mining stocks were under pressure as metals prices fell, with Rio Tinto, Glencore, BHP Billiton, Anglo American and Antofagasta all in the red again. Precious metals miners Fresnillo and Randgold were among the top risers, however.
TalkTalk Telecom was on the back foot as it drummed up an impressive number of new customers in the first half of the year but at the expense of profits, which fell into the red and will be towards the lower end of its guided range for the full year.
Legal & General Group retreated after it said that its investment management arm has entered into an agreement to acquire Canvas, an established exchange traded fund platform, for an undisclosed amount.
Housebuilder Barratt Developments fell despite saying it has made a strong start to the year and remains confident of delivering a good performance in FY18.
Wizz Air flew lower after it signed a memorandum of understanding with Airbus relating to the purchase of a further 146 Airbus A320neo family aircraft.
Card Factory slipped after posting revenue growth but saying margins were under pressure, while Crest Nicholson was weaker despite posting a rise in full-year unit completions, as it warned that maintaining momentum through planning is a major challenge for the industry.
On the upside, precious metals miners Fresnillo was the standout gainer after an upgrade to ‘buy’ at HSBC.
AstraZeneca was trading up after it and its global biologics research and development arm, MedImmune, announced that the US Food and Drug Administration has approved Fasenra (benralizumab) for the add-on maintenance treatment of patients with severe asthma aged 12 years and older, and with an eosinophilic phenotype.
Cobham rose after saying that trading remains on track as it reiterated its full-year guidance and added that its strategic review is still ongoing.
Great Portland Estates advanced after reporting a 1% improvement in its portfolio valuation in its first half results, with the value of its developments rising 1.6% over the half-year.
