European indices flat as traders eye non-farm payrolls
City Index July 8, 2011 9:57 PM
<p>European indices traded flat to positive on Friday morning as traders awaited a raft of US jobs data, due out at 1.30pm (UK time). The […]</p>
European indices traded flat to positive on Friday morning as traders awaited a raft of US jobs data, due out at 1.30pm (UK time).
The FTSE 100 posted gains of a mere five points to trade above resistance levels of 6050, whilst the German DAX and French CAC both traded higher by 0.3% in early trade.
Naturally there is a keen eye towards the crucial non-farm and private payrolls figures out after lunch. These figures are eagerly watched by investors as a crucial gauge of the strength of the US economy and future policy changes by the Federal Reserve.
The market is currently expecting a growth of 90,000 non-farm payrolls, whilst private jobs are set to increase by 110,000 with the unemployment rate unchanged at 9.1%. Last month the market was shocked to see a severely weak jobs report, and this sent equities and the US dollar heavily lower in the immediate aftermath. This time around the market is expecting a better report, with optimism raised after yesterday’s much better than expected ADP employment figures, which came in at more than double the consensus expectations.
BSKYB shares trade sensitively
BSKYB shares continue to trade sensitively to the unpredictable future of News Corp International’s $14 billion bid for the UK broadcaster. The decision by the Murdochs to close the News of the World newspaper is an example of the vigour and determination that they maintain to see their bid for BSKYB proceed successfully. Culture Secretary Jeremy Hunt is expected to delay his approval for the deal until September as he considers the huge amount of complaints over the takeover. The market remains optimistic that the News Corp deal will still proceed but the situation appears to be changing on a daily basis and as such, the success of the bid remains unpredictable as of yet.”
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