London pre-open: Stocks seen up ahead of payrolls report
By Michele Maatouk
Date: Friday 05 Sep 2025
(Sharecast News) - London stocks were set to gain at the open on Friday following a solid close on Wall Street, as investors looked ahead to the latest US non-farm payrolls report.
The FTSE 100 was called to open around 20 points higher.
The non-farm payrolls report for August is due at 1330 BST, along with the unemployment rate and average earnings.
Kathleen Brooks, research director at XTB, said: "Economists are expecting a reading of 75k, up slightly from the 73k for July. The unemployment rate is expected to inch up to 4.3% from 4.2%, and average hourly earnings are expected to drop slightly to a 3.8% annual rate from 3.9% in July.
"Revisions will also be watched closely, after a large 258k downward revision to the May and June numbers. This is what ignited the ire of Donald Trump after last month's report, which resulted in him firing the head of the Bureau of Labor Statistics who produce the numbers. Since then, there has a been a huge tussle between the President and the Fed, which has resulted in a recalibration of interest rate expectations for the US, and a large number of cuts getting priced in.
"Politics and payrolls don't usually mix well, but so far, the impact on financial markets has been small with both US bonds and stocks outperforming their global peers. However, the significance of payrolls beyond the financial realm means that the stakes are high as we lead up to today's report."
On home shores, data released by Halifax showed that house prices rose in August for the third month in a row, to a fresh record high.
House prices ticked up 0.3% on the month following a 0.4% jump in July.
On the year, prices were up 2.2% in August, easing from 2.5% growth the month before.
The average price of a home stood at £299,331 last month, up from £298,400 in July and marking a new record high.
Amanda Bryden, head of mortgages at Halifax, said: "The story of the housing market in 2025 has been one of stability. Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures.
"Affordability remains a challenge, but there are signs of improvement. Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%.
"Combined with strong wage growth - which has outpaced house price inflation for nearly three years - this is giving more prospective buyers the confidence to take the next step. Summer is typically a quieter period for the market, so the recent rise in mortgage approvals to a six-month high is an encouraging sign of underlying demand.
"While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride. Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year."
Elsewhere, figures from the Office for National Statistics showed that monthly retail sales rose more than expected in July.
Retail sales were up 0.6% on the month following a 0.3% jump in June, versus expectations for 0.2% growth.
On the year, sales were up 1.1%, missing expectations for 1.3% growth.
In corporate news, housebuilder Berkeley reiterated its full-year profit guidance after "stable" trading over the first four months of its financial year.
The company said it is on target to hit the pre-tax earnings guidance of £450m for the 12 months to 30 April 2026, 85% of which is already secured through exchanged sales contracts, with a similar profit expected next year.
Asset manager Ashmore reported a 3% fall in assets under management driven by net outflows of $5.8bn amid market turmoil highlighted by US tariffs.
AuM came in at $47.6bn, resulting in a 15% fall in pre-tax profit to £108.6m for the year to 30 June.
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