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London open: Stocks flat as investors eye jobs data
London stocks were flat in early trade as investors awaited the release of some key jobs data.
At the same time, oil prices retreated. West Texas Intermediate was down 0.8% to $46.21 a barrel and Brent crude was off 0.9% to $48.78.
Investors were looking ahead to the release of the UK unemployment rate, average weekly earnings and the claimant count, all due at 0930 BST. In the US, the Federal Open Market Committee minutes will be eyed at 1900 BST.
Naeem Aslam, chief market analyst at Think Markets, said: “The number which is of significant importance today is the employment data. Once again, it is still way too early to paint the Brexit picture, but some clues can be found in the data that may give us a better understanding if where we’re headed. The forecast for the ILO unemployment rate is 4.9% and this will not produce any smoke from Brexit’s guns.
“Nevertheless, the jobless claim number for July may provide us with an indication of which kind of gunpowder is in the Brexit gun. The average earning is expected to rise and has no bearings on the Brexit result. The forecast is 0.1% higher than the previous number of 2.3%.”
In corporate news, aerospace and defence group Cobham rallied after announcing that chief executive officer Bob Murphy will step down from his role by the end of 2016 to pursue other opportunities and will be succeeded by David Lockwood no later than 1 January 2017.
Motor retail and aftersales service company Lookers was in the black after it reported that revenue in the first half increased 33% to £2.34bn.
FTSE 250 construction group Balfour Beatty surged after it reinstated its dividend as it reported a smaller loss for the half year ended 1 July.
Indivior rocketed after saying its new heroin addiction treatment has proved successful in late-stage clinical trials, meaning it could be approved for sale in the US by the end of next year.
On the downside, insurer Admiral was sharply lower amid concerns about the group’s Solvency II position, after it lifted its interim dividend by almost a quarter and posted a jump in profits.
