LONDON (ShareCast) - Markets are expected to open in positive territory on Friday morning as investors show optimism ahead of the all-important US jobs report due out later on.

City sources predict the FTSE 100 will open up 24 points from yesterday's close of 6,682.
 
Economic data from the States has continued to improve this week with jobless claims falling to a five-year low, the US ISM manufacturing index jumping to a two-year high and economic growth accelerating strongly in the second quarter.

Meanwhile, Wednesday's ADP employment report - normally seen as a rough guide to today's official figures from the Bureau of Labor Statistics - came in better than expected, with 200,000 private-sector jobs being added in July (consensus forecast: 180,000).

Both the Dow Jones and S&P 500 finished at new all-time highs on Thursday night on Wall Street, boosted by the strong figures as well as the Federal Reserve's support for continued monetary stimulus.

"Yesterday’s surprise jump in the ISM manufacturing number, better-than-expected weekly jobless claims, combined with the improved ADP and GDP reports on Wednesday conspired to give is the perfect cocktail for yesterday’s up move and today’s US non-farm payrolls report could well add the final flourish to a record week, and a perfect start to August," said Senior Market Analyst Michael Hewson from CMC Markets.

Today's official employment release is expected to see a 185,000 gain in non-farm payrolls in the US in July, slightly below the 195,000 increase in June. However, the unemployment rate is predicted to fall from 7.6% to 7.5%.
 
Stocks to watch

Royal Bank of Scotland confirmed reports that Ross McEwan would take over as Chief Executive Officer from Stephen Hester as the lender unveiled its first half results. The bank swung to a pre-tax profit of £1.3bn from a loss of £1.6bn last year following a successful restructuring.
 
Molten metal engineering group Vesuvius saw revenues slip year-on-year in the first half due to weak conditions in the global steel and foundry end-markets. Group revenue from continuing operations was down 5.7% in the six months to June 30th to £773m.

Drinks can maker Rexam was held back by high aluminium and labour costs, dragging first half profits lower than last year's. However, management are confident enough about the cost 'migration' measures and strong sales pipeline that they have increased the interim dividend 14% to 5.7p per share.

BC

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