London pre-open: Stocks to slide after US, Asian tech selloff; NFP eyed

(Sharecast News) - London stocks were set to tumble at the open on Friday following a tech selloff on Wall Street and in Asia, as investors eyed the latest US non-farm payrolls report.

The FTSE 100 was called to open around 1% lower.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The tech selloff accelerated yesterday, pushing the Nasdaq 100 down by an eye-watering 6.36%. The S&P 500 shed more than 4%, and the Korean Kospi is down by 5%. The memory-chip bubble there had already burst around June, with investors heading towards the exit all at the same time, as everyone wondered when the AI frenzy would come to an end. It is possible that we have reached boiling point in Nasdaq too, and now value has started evaporating.

"I hear hopes about Anthropic's upcoming IPO, which could be delayed, by the way, if things get worse from here. The Nasdaq 100 is now in correction territory, having slid more than 10% from its October peak. The S&P 500 would join it if the selloff extends towards the 7,050 mark."

Looking to the rest of the day, attention will turn to the non-farm payrolls report for October, along with average earnings and the unemployment rate, due at 1330 GMT. Expectations are for 65,000 jobs to have been added in October, while the unemployment rate is set to remain at 4.2%.

On home shores, data released earlier showed that house prices slid in October as the challenging economic backdrop hit home.

The Lloyds house price index fell 0.6% last month, building on September's 0.1% decline. On an annual basis, house prices are now 1.2% lower - the biggest fall since October 2023. The average property price is now £296,285.

Investors will also be mulling figures from the British Retail Consortium, which showed that retail footfall fell sharply in October amid low consumer confidence, with high streets the worst hit due to stormy weather.

The BRC-Sensormatic footfall monitor showed that footfall declined 4.7% on the year following a 2.9% drop in September.

Footfall on the high street fell 5.2% in October, a deterioration on the previous month's 3% decline. Retail parks suffered a 3.6% drop in footfall last month, following a 1.7% fall in September, while the decline at shopping centres worsened to 4.1% from 3.5% a month earlier.

Footfall fell by 3.1% in Northern Ireland, 4.3% in Scotland, 4.6% in England, and 6.3% in Wales.

BRC chief executive Helen Dickinson said: "Footfall fell sharply in every part of the UK in October. Low consumer confidence was likely a key factor in the decline in visitors, as households navigated rising inflation and high energy costs. Of all destinations, High Streets were hit the hardest, as the stormy weather led many consumers to stay home or use locations with easy parking options.

"With a new Government high street strategy, the rejuvenation of our shopping destinations is a clear priority. To do this, we must make them safe for both shoppers and retail staff. While there are positive signs that the police are cracking down on organised crime and repeat offenders, it is vital that the Government grants the police the powers promised in the Crime and Policing Act. The commencement of this legislation would scrap the £200 threshold for low-level theft and give workers the protections they need, making our high streets safer for all."

In corporate news, Coca-Cola HBC said it had received no notification from the Russian government of any changes to its operations in Russia, which have been operated locally on a self-standing basis since 2022.

Shares in the bottler of Coca-Cola products tumbled on Thursday following reports its Russian business could be seized or placed under state-controlled external management.

It said in a brief statement on Friday: "Coca-Cola HBC does not rely on income or capital from its Russian business to fund the group's operations outside Russia or to service the group's indebtedness.

"Coca-Cola HBC will provide further updates as appropriate."

IAG reported a lower third-quarter profit as a sharp rise in fuel costs and operational disruption offset strong revenue growth across its transatlantic business, although the airline group increased its dividend and pressed ahead with its share buyback programme.

The British Airways owner said operating profit before exceptional items fell to �1.73bn from �2.05bn a year earlier, as total fuel costs jumped 30.4% and air traffic control outages disrupted operations during the quarter.

Revenues increased 4.5% to �9.74bn, supported by strong passenger demand, higher cargo revenues and continued growth at its Loyalty business.

Chesnara said it has agreed to buy MetLife UK, a closed-book life insurance business with around 18,000 policies and £1.7bn of assets under administration. The acquisition is expected to enhance Chesnara's UK operations and generate approximately £90m of lifetime cash flows.

No purchase price was disclosed. Chesnara said the consideration is not expected to be material. The deal is expected to complete in the first half of 2027, subject to regulatory approvals.