1630Close: The FTSE 100 ended the week up 13.40 points to 6,571.68 as the US jobless rate fell unexpectedly to 6.6 per cent in January. Economists had expected the rate to remain unchanged from December's reading of 6.7 per cent. The Labor Department report also showed that employers added 113,000 workers last month, missing the forecast missed forecast of 180,000. Back in the UK, industrial production increased by 0.4 per cent month-on-month in December, compared to November when it fell 0.1 per cent and the forecast for a rise of 0.6 per cent.
UK manufacturing output climbed 0.3 per cent in December after a drop of 0.1 per cent a month earlier, missing analysts' estimates for an increase of 0.6 per cent. Meanwhile, the National Institute of Economic and Social Research (NIESR) on Friday raised its UK economic growth forecast to 2.5 per cent from a previous 2 per cent, saying consumer spending will drive recovery.
1454: In the opinion of Barclays Research the US non farm payrolls report continues to indicate that moderate job growth remains "in place", which will keep the unemployment rate heading lower and the Fed on track for further 'tapering'. Nevertheless, they also pointed out that "there appears to have been some slowing in the pace of payroll gains, which would be consistent with our expectation that real GDP growth will slow to about 2.5% [in annualized terms] in the first quarter of 2014".
1409: Initial market commentary is highlighting the unexpected, and positive, rise seen in the labour force participation rate. Some analysts are skeptical of the official line that there was no negative impact on the data from the weather.
1334: Non-farm payrolls for the previous three months have been revised higher by a combined 71,000, although figures for August and September were revised lower by a cumulative 47,000.
1330: US non-farm payrolls expanded by 113,000 during the month of January (consensus: 180,000). Average hourly earnings increased by 0.2 per cent over the month (consensus: 0.2 per cent). FTSE 100 down 12 to 6,546.
1320: US non-farm payrolls figures due to come out at 13:30. Consensus forecasts are for a 180,000 person gain and a 0.2 per cent rise in average hourly earnings. The revisions to December´s preliminary data may also be worth watching out for.
1256: Stock futures in the US are pointing to a decent start on Wall Street ahead of the jobs report, as indices look to extend gains after their best rise in seven weeks the day before. Apple is among the best performers in pre-market trade Stateside after CEO Tim Cook told The Wall Street Journal that the firm bought 14bn dollars of its own stocks since disappointing the market with results two weeks ago. In the UK, heavyweights Persimmon, Meggitt and TUI Travel are bolstering the blue-chip index. The FTSE 100 is up 14.14 points at 6,572.42.
1100: German industrial production contracted at a 0.6 per cent month-on-month pace in December, coming in well below the 0.3 per cent gain expected.
1018: Analysts at Jefferies have maintained their 'buy' rating on shares
of Shire despite the outcome of the clinical trials for Vyvanse. They explain that "We were more optimistic for expanded use of Vyvanse in MDD than BED, so the setback comes as a negative surprise [...] Pipeline focus is now increasingly on rare orphan diseases, potentially putting pressure on management to execute more business development deals and/or M&A, in our view, with ophthalmology and blood cancers possible targets."
0930: UK industrial production rose by 0.4 month-on-month in December (consensus: 0.6 per cent).
0839: Bond yields moved sharply higher on Thursday in the world´s largest economies after the European Central Bank (ECB) refrained from undertaking new policy measures to forestall what some see as significant downside risks to consumer prices. The Footsie has started the day slightly in the blue following overnight gains on Wall Street. However, shares are seeing some selling pressure on reports that Germany´s Constitutional court has ruled that the ECB´s bond purchase programme, known with the acronym OMT, oversteps its mandate. That has sent the single currency reeling.
Tate&Lyle is in the lead early on after JP Morgan upped its view on the stock to 'overweight'. Shire is the worst perfomer on the top flight index. The company has announced it will no longer pursue the development of Vyvanse following a clinical trial of the medicine for the treatment of major depressive disorder. The HSBC China services sector Purchasing Managers´ Index slipped printed at 50.7 for January, after a reading of 50.9 for the month before. FTSE 100 up 4 to 6,562.