FTSE preview: Shares up on US jobs hope

 

The FTSE 100 index is expected to rise today after encouraging US economic data lifted confidence in the recovery, with investors awaiting a key US jobs report.

Dealers monitor their screens on the trading floor of IG Index in London

Friday feeling: Eyes will be on US jobs data.

The UK blue chip index looks set to gain 22-26 points, or as much as 0.4%, according to financial bookmakers, after it closed down 16.73 points, or 0.3%, at 5,983.34 on Thursday.

Technical analysis for the FTSE 100 was negative on a short-term view.

'Like many of the other global index traders, FTSE traders seem reluctant to buy strength, instead preferring to wait for corrections into value zones,' James Hyerczyk, an analyst at Autochartist, said.

'This is additional support for the thought that this market is more likely to pullback over the near-term.'

No domestic economic data was scheduled for release on Friday.

Improved jobless claims figures in the United States have improved the mood ahead of the US employment report.

Non-farm payrolls are expected to have increased by 145,000 jobs, according to a Reuters survey, after adding 103,000 in December. But severe snow storms that slammed large parts of the nation could result in a much lower figure.

The market will be watching developments in Egypt. The Obama administration is discussing with Egyptian officials the immediate resignation of President Hosni Mubarak as one of several scenarios for a transition of power, a US official said.

There will be updates today from Electrocomponents, Easyjet and Southern Cross Healthcare.

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