Market report: Friday preview
Spread-betters expect the FTSE 100 index to open 50 points lower at 6,533 having closed last night down 135.5 points or 2%, at 6,586.1.
Overnight in Wall Street, stocks plunged on concerns about a slowing US economy and the Federal Reserve may be done with cutting interest rates.
The Dow Jones Industrial Average index fell back 362.14 to 13,567.87, while the Standard Poor’s 500 index was 40.94 lower at 1,508.44 and the Nasdaq Composite index fell 64.29 to 2,794.83.
In US economic news, investors today will be focused on October non-farm payrolls to see if there is any further evidence the economy is slowing. The market is expecting that 85,000 jobs were added to the US economy in October, down from 110,000 in September.
On Asian markets, the Hang Seng index finished the morning session sharply lower, down 836.80 points at 30,656.08 led by banks and property companies as investors locked in recent gains following the sell off on Wall Street.
Meanwhile the Nikkei 225 Stock Average closes down 352.92 points or 2.1% at 16,517.48.
In Asian trading hours, oil prices traded higher but was below record peaks of more than $96 as investors took profit and global stock markets weakened on concerns over the US economy.
New York’s main futures contract, light sweet crude for delivery in December, was trading at $93.96 a barrel, up 47 cents from its close of $93.49 in US trade Thursday.
Brent North Sea crude for December traded at $90.70, up 98 cents.
Turning to the UK markets, earning news may be a focus with expected to report a 25% increase in first half pretax profits on Friday due to strong growth in premium traffic and favourable comparatives.
The airline’s first-half pretax is likely to come in at around 590m compared to the 371m it reported in the same period of 2006, which was plagued by security disruptions and heightened security measures that cost BA around 100m.
Elsewhere, British Broadcasting is reporting first-quarter figures with the spotlight likely to be on subscriber growth and retention. The UK pay-TV giant’s key performance indicators, including the number of additional subscribers to its TV, broadband and telephony products, as well as how much they spend and how many stick with Sky, will be the focus of market attention.
There have also been renewed calls for British Sky Broadcasting shareholders to vote down chairman Rupert Murdoch’s re-election at the AGM later the same day.
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