UKX FTSE 100 Index

By Carla Mozee, MarketWatch

London benchmark on track for weekly win; U.S. jobs report ahead

Blue-chip stocks in the U.K. were struggling Friday to keep up a run of wins, as mining shares grappled with the prospect of U.S. tariffs on steel imports. But the London benchmark is still on track to rise for the week.

The moves came ahead of the monthly U.S. jobs figures, a widely watched report used to gauge the health of the labor market in the world's largest economy.

How markets are moving

The FTSE 100 index fell 0.1% to 7,194.87. On Thursday, the benchmark rose 0.6% (http://www.marketwatch.com/story/european-stocks-rise-for-4th-day-in-a-row-as-ecb-steals-focus-from-us-tariffs-2018-03-08) and marked a fourth straight day of gains. For the week, the FTSE 100 was on course to rise 1.9%, which would be the first weekly win in three weeks.

The pound bought $1.3815, little changed from $1.3812 late Thursday in New York.

What's driving markets

Mining shares are moving slightly higher after U.S. President Donald Trump late Thursday signed a decree to impose tariffs of 25% on imported steel and 10% on aluminum. But Canada and Mexico were exempted from the levies as the U.S. attempts to renegotiate the North American Free Trade Agreement, while other countries are negotiating exclusions.

Read:EU lines up its salvos to fight Trump tariffs (http://www.marketwatch.com/story/eu-lines-up-its-salvos-to-fight-trump-tariffs-2018-03-08)

European Union Trade Commissioner Cecilia Malmstrom on Friday at a forum in Brussels said the bloc is working on being excluded from the tariffs, which go into effect March 23.

"We hope we can get confirmation that the EU is excluded from this," she said, adding that while the EU shares concerns of overcapacity in the steel markets, "this isn't the right way" to deal with the issue.

See:ECB's Draghi: 'If you put tariffs against your allies, one wonders who the enemies are' (http://www.marketwatch.com/story/ecbs-mario-draghi-if-you-put-tariffs-against-your-allies-one-wonders-who-the-enemies-are-2018-03-08)

And check out: EU leader responds to Trump's tariff plan: 'We can also do stupid' (http://www.marketwatch.com/story/eu-leader-responds-to-trumps-tariff-plan-we-can-also-do-stupid-2018-03-07)

The pound was steady against the dollar, but could see more action after the release of the U.S. nonfarm payrolls report for February (http://www.marketwatch.com/story/are-workers-really-getting-a-raise-wages-are-focus-of-upcoming-us-jobs-report-2018-03-08), due at 1:30 p.m. London time, or 8:30 a.m. Eastern Time. Wage growth will be in focus. Analysts are expecting the U.S. added 220,000 new jobs last month.

Figures on industrial production and construction output in the U.K. for January are due at 9:30 a.m. London time.

What strategists are saying

-- "Despite a 24-hour period stuffed with international developments, the markets avoiding any drastic movements this Friday," said Spreadex financial analyst Connor Campbell.

"Perhaps it's because investors are caught between Donald Trump signing an order dictating tariffs on metal imports -- but one with room for country-by-country exceptions -- and the news that the president is set to meet Kim Jong Un for an unprecedented summit. It appears that the former is informing trading more than the latter," Campbell said in a note.

-- "We retain a positive outlook on the mining sector, supported by a robust macroeconomic backdrop, albeit one currently being tested by President Trump's attempts at protectionist trade policies," said Investec analyst Hunter Hillcoat in a note.

Stock movers

In the mining group, iron ore producers Rio Tinto PLC (RIO) (RIO) (RIO) and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) fell 0.6% and 0.3%, respectively, and Antofagasta PLC (ANTO.LN) lost 0.5%.

But copper miner Fresnillo PLC (FRES.LN) turned up to trade 0.3% higher and Randgold Resources PLC (RRS.LN) gained 0.2%.

Investec upgraded Anglo American PLC (AAL.LN) and Glencore PLC (GLEN.LN) to buy from hold. Shares were up 0.5% and 0.2%, respectively.

Topping advancers, NMC Health PLC (NMC.LN) rose 3.5%.

(END) Dow Jones Newswires

March 09, 2018 04:26 ET (09:26 GMT)

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