Economic news

Miners Drag FTSE 100 Lower ahead of U.S. Jobs Data

  • FTSE 100 edges down 0.2%, FTSE 250 off 0.6%
  • JD Wetherspoon rises on reporting narrower annual loss
  • Superdry soars after swinging to FY profit

Oct 7 (Reuters) - London's FTSE 100 index slipped on Friday as cautious investors awaited a key U.S. jobs report due later in the day, although UK's main stock indexes were set to snap a three-week losing streak and post weekly gains.

The FTSE 100 edged 0.2% lower, while the mid-cap FTSE 250 shed 0.6% by 0831 GMT.

Risk-off sentiment prevailed globally ahead of the U.S. data, due at 1230 GMT. The Fed is laser focused on cooling down jobs growth as it attempts to quell inflation.

"It is important for British companies since they trade in U.S. dollars", said Daniel Kostecki, a senior market analyst with Conotoxia Ltd.

"They need to know how much they will pay for and earn in the coming months and quarters, and how fast".

Risk assets have taken a hit this year as central banks undertake monetary tightening to tame surging price pressures, with the FTSE 100 shedding 5.4% year-to-date.

Denting sentiment further for markets, recent surveys have showed that UK firms were not too confident of a profit increase next year.

Kostecki expects profits to rise very slowly and inflation to stay on for some time in the UK. "So, markets still expect interest rates to rise."

Mining majors were off 0.4%, tracking lower copper and zinc prices.

J D Wetherspoon climbed 10.6% after the pub operator reported that its annual loss narrowed from a year ago, even as it battled soaring energy and labour costs. 

Superdry jumped 12.3% after the fashion group returned to profit in the year to April 30, but said that it was cautious in the near term due to economic factors, including high inflation.

Reporting by Susan Mathew in Bengaluru; Editing by Savio D'Souza and Uttaresh.V

Source: Reuters

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