London pre-open: Stocks to edge lower as investors eye payrolls

(Sharecast News) - London stocks were set to edge lower at the open on Friday as investors eyed the latest US non-farm payrolls report.

The FTSE 100 was called to open down around 15 points.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "The FTSE looks unlikely to move much this morning with little scheduled in the way of corporate news for investors to hang their hat on.

"That sentiment reflects an unremarkable 24 hours on markets across the globe. But world markets remain at close to all-time highs, despite the reality of higher tariffs and diminishing confidence for both businesses and consumers. So, it's little surprise investors are taking their foot off the gas."

Nathan said the US data is expected to show unemployment stable at 4.2% despite a forecast slowdown in the rate of non-farm payroll growth in May to about 130,000 compared to around 180,000 for each of the previous two months.

The payrolls report for May is due at 1330 BST, along with the unemployment rate and average earnings.

On home shores, data released earlier by Halifax showed that house prices eased slightly in May following surge in activity during spring.

House prices fell by 0.4% last month following a 0.3% rise in April. The average property price is now �296,648.

However, Halifax said the market remained stable, with house prices up 2.5% over the year.

Amanda Bryden, head of mortgages at the lender, said: "These small monthly movements point to a housing market that has remained largely stable, with average prices down just 0.2% since the start of the year.

"The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty."

The UK housing market saw a flurry of activity earlier this year, as homebuyers rushed to complete deals ahead of changes to stamp duty thresholds, which came into effect on April.

Looking ahead, Bryden acknowledged that affordability remained a challenge for many, with house prices still high relative to incomes.

But she continued: "Lower mortgage rates and steady wage growth have helped support buyer confidence.

"The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends.

"Despite ongoing pressure on household finances and still-uncertain economic backdrop, the housing market has shown resilience, a story we expect to continue in the months ahead."

In corporate news, healthcare property investment and management firm Assura confirmed that due diligence in relation to a takeover proposal from Primary Health Properties is still ongoing.

After formally adjourning a court meeting and general meeting required to implement an earlier takeover offer from KKR and Stonepeak, Assura said that the due diligence process with PHP - which on 16 May sweetened its proposal to outbid KKR/Stonepeak - is moving ahead in a timely manner.

Trainline said it has been selected by the Rail Delivery Group as a technology supplier to support one of four digital pay-as-you-go trials.

The trials will run across the Northern Rail and East Midlands Railway networks, starting between September and November, with each running for nine months from their respective start date.