Proactive Investors -
- Blue-chip index 28 points lower at 7,663.
- Frasers shutters Matches.
- Informa results impress.
FTSE 100 lower as markets await key US job data
The FTSE 100 was down 28 points at 7,663 on Friday morning as the markets eagerly awaited key non-farm payroll data in the US.
The data, which will reflect US unemployment levels in February, is expected to be steady with last month’s figures.
As per XTB’s Kathleen Brooks, a 200,000 increase in payrolls over February is expected, with unemployment remaining steady at 3.7%.
Average hourly earnings growth is tipped to moderate meanwhile, coming in at 0.2% for February, compared to 0.6% in January.
“This data is worth watching,” Brooks commented, “if the data comes in line with expectations, or below forecasts, this would be seen as a positive development".
This could see Treasury yields fall alongside the dollar and stocks to continue to rally, she explained.
“If there is an upside surprise, then risk sentiment may falter,” Brooks added.
Last month, payrolls increased by 353,000, well above forecasts for a 180,000 jump.
Eurozone just avoids recession
The Eurozone narrowly avoided slipping into technical recession late last year, as growth in the final quarter remained flat.
As per Eurostat, gross domestic product (GDP) was unchanged in the Eurozone over the final three months of the year, following a 0.1% contraction in the previous period.
Eurozone GDP increased by 0.4% over the whole year, Eurostat added, with Denmark penning the largest growth, of 2%, and Ireland seeing the biggest contraction, of -3.4%, in the final quarter.
Euro area #GDP stable in Q4 2023, +0.1% compared with Q4 2022 https://t.co/SCCzhj7AiA pic.twitter.com/DBIk4WbPJT— EU_Eurostat (@EU_Eurostat) March 8, 2024
BP ex-boss Bernard Looney repays half of bonus
Ousted BP (LON:BP) chief executive Bernard Looney has repaid the oil firm hundreds of thousands of pounds worth of his final annual bonus.
Some £420,000, equating to 50% of Looney’s 2022 bonus, has now been given back, BP said in its annual report on Friday.
Looney resigned last September over several romantic affairs with colleagues, which BP found he had knowingly mislead it about.
BP then formally dismissed Looney in December over “serious misconduct”.
Looney’s replacement, Murray Auchincloss, was paid just over £8 million last year meanwhile, after stepping up in September and being permanently appointed in January.
DS Smith soars on news of Mondi takeover
DS Smith shares gained 7% on Friday morning after the packaging firm announced a £5.1 billion takeover by Mondi (LON:MNDI).
Shares will be priced at 373p each, at a 33p premium for DS Smith investors, under the deal, which will create one of the world’s largest packaging companies.
“The combination is an exciting opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions,” DS Smith told shareholders on Friday.
“[This would be] with complementary geographic footprints, leading customer relationships, a strong balance sheet and cash flow profile, and the potential to deliver substantial benefits to respective shareholders, customers, employees and related stakeholders.”
Mondi would own 54% of the merged business, with DS Smith holding the remaining 46%.
DS Smith climbed 7.3% to 348.90p on the news.