Britain's FTSE consolidates ahead of U.S. jobs data

Britain's FTSE consolidates ahead of U.S. jobs data
Business & Markets 2013
Written by Reuters
Friday, 05 July 2013 15:36

LONDON (July 5): Britain's edged lower early on Friday having enjoyed its biggest gain for 20 months in the previous session ahead of important jobs data out of the United States.

London's blue chip index fell 12.17 points, or 0.2 percent to 6,409.50, by 0711 GMT. It enjoyed its biggest gain since November 2011 on Thursday after the Bank of England and the European Central Bank signalled extended periods of monetary stimulus.

In context though the FTSE 100 has only just started to recover from near 12-percent falls from May highs and remains down around 6 percent from that level.

Falls were triggered by fears over the growth outlook which were precipitated by the U.S. Federal Reserve saying it would likely begin scaling back its stimulus measures by the end of the year, dependent on economic data.

Investors will therefore focus on U.S. jobs data with the non-farm payrolls due out at 1230 GMT expected to have increased by 165,000 last month, according to a Reuters survey of economists, which could keep the Fed on track to start curtailing its monetary stimulus later this year

Alastair Winter, chief economist at Daniel Stewart Securities, said he sees more volatility in markets surrounding Fed policy and expected figures above 200,000 or below 100,000 to cause a swing in markets. - Reuters