Lunchtime market roundup: European blue chips up ahead of US jobs data

Blue chip stock indices in London, Paris and Frankfurt were higher on Thursday midday ahead of crucial US nonfarm payrolls data for June alongside weekly US jobless figures.

The FTSE 100 index was up 50.12 points, 0.5%, at 10,528.46. The FTSE 250 was down 84.05 points, 0.4%, at 23,246.02, and the AIM all-share was down 2.03 points, 0.3%, at 774.02.

The Cboe UK 100 was up 0.4% at 1,043.76, the Cboe UK 250 was down 0.1% at 20,028.47, and the Cboe small companies was down 0.4% at 18,240.89.

In European equities on Thursday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was 0.7% higher.

Sterling was at USD1.3329 at midday on Thursday, up from USD1.3273 at the London equities close on Wednesday. Against the euro, sterling advanced to EUR1.1681 from EUR1.1657.

The euro was up at USD1.1407 from USD1.1383. Against the yen, the dollar was lower at JPY161.41 from JPY162.43.

"Asian markets wobbled on renewed fears around excessive AI spending and whether all the good news for the chip supply firms was fully priced in," said AJ Bell analyst Russ Mould.

"European markets managed to keep their cool and push ahead as investors rotated away from tech into more defensive-style sectors."

Investors will also be watching the US jobs report closely, which is due at 1330 BST.

The June numbers are expected to show another strong month of growth. Nonfarm payrolls have surprised to the upside in the past three months, with the US economy adding 214,000 jobs in March, 179,000 in April and 172,000 in May.

This is forecast to cool slightly in June, with Bloomberg consensus predicting nonfarm payrolls growth of 125,000. Barclays thinks growth will slow to a below consensus 100,000 in June which, barring revisions, would leave the three-month rate at 150,000, "seemingly consistent with a tightening labour market", given the 73,000 average pace during the first quarter of the year.

AJ Bell analyst Russ Mould said: "Expectations are low for jobs expansion, but any significant beat or miss has the potential to be a market-moving event. Jobs and inflation are at the heart of the Federal Reserve's interest rate decisions, and investors are desperate for any clues into what the Fed might do next."

Meanwhile, Iran's chief negotiator Mohammad Bagher Ghalibaf called for massive turnout at Ali Khamenei's funeral to avenge the supreme leader's death in US-Israeli strikes at the start of the war.

"I invite all the Iranian people... to write a glorious page in the history of Islamic Iran through your presence" at the funeral ceremonies starting Saturday, said Ghalibaf, who is also Iran's parliament speaker.

The next indirect US-Iran talks will come after the late Iranian supreme leader's funeral.

Brent crude was trading lower at USD70.65 a barrel at midday on Thursday from USD71.85 on Wednesday.

Bank of England head Andrew Bailey has insisted the central bank is "not complacent" about bringing down UK inflation following warnings from its chief economist.

Bailey said he was "not happy" that the rate of consumer prices index inflation was above the Bank's 2% target.

The governor said in an interview with CNBC: "We're not complacent. It's perfectly reasonable for people to take different views. One of the strengths of our committee is that you do have quite different views that are expressed, and that's good, I welcome that.

"Huw Pill does take a different view on that and he's quite justified to take that position. Of course we're concerned. We're not complacent at all."

Pill, the Bank of England's chief economist and member of its rate-setting committee, told the Press Association earlier this week that the Bank "should not be complacent" about the threat of CPI rising as a result of oil and gas prices surging amid the US-Israeli war with Iran.

Stocks in New York were called to open mixed. The Dow Jones Industrial Average was called up 0.2%, but the S&P 500 index was called slightly lower, and the Nasdaq Composite was called to open down 0.4%.

The yield on the US 10-year Treasury was quoted at 4.49% at midday on Thursday, widened from 4.47% on Wednesday. The yield on the US 30-year Treasury gained slightly to 4.98% from 4.97%.

Back in London, shares in Polar Capital Technology Trust were down 2.1% as global technology stocks fell.

Technology services provider Computacenter also fell 1.5%.

On the FTSE 250 index, CMC Markets continued to climb after jumping 42% on Wednesday. It led the index and was up 8.1%.

On Wednesday, it said it now expects net operating income for the year that ends in March 2027 to be at least £550 million, "materially" higher than its prior £460 million to £480 million view.

On Thursday, Panmure Liberum raised its rating on the stock to 'buy' from 'hold'. It increased the price target to 700p from 380p previously.

Currys shares were 4.2% lower as an uncertain backdrop weighed despite reporting growth in annual earnings.

"The outside world remains uncertain, and we are not counting on it to do us any favours," Chief Executive Alex Baldock cautioned.

The electricals retailer said there "continues to be macro uncertainty".

AJ Bell analyst Dan Coatsworth said: "The company also flagged macro uncertainty, and Apple's recent price hikes on multiple products imply that other electronics items could become more expensive as manufacturers seek to pass on higher raw material costs. That creates an element of uncertainty in terms of consumer ability or willingness to buy more expensive items."

Hutchmed China shares climbed 12% as it said Orpathys has been conditionally approved in China to treat locally advanced or metastatic gastric cancer or gastroesophageal junction adenocarcinoma patients.

"The approval of Orpathys for MET-amplified advanced gastric cancer is an important achievement that underscores Hutchmed's enduring commitment to bringing in-house discovered innovations to patients," said acting Chief Executive Officer Johnny Cheng.

Gold was lower at USD4,063.95 an ounce at midday on Thursday from USD4,080.66 late Wednesday.

Still to come on Thursday's economic calendar is the US jobs report, as well as factor orders data for the US and a reading of the Canadaian manufacturing purchasing managers' index.

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