FTSE flat as investors eye key US jobs data
THE FTSE was flat in early trading as investors awaited key US jobs data due out later.
US non-farm payrolls are forecast to rise by 150,000 after a 200,000 increase in December, while the unemployment rate was expected to remain static at 8.5 per cent.
On the domestic data front the UK service industry picked up in January according to Markit/CIPS.
The index rose to a 10-month high of 56 from 54 in December. Economists were forecasting a fall to 53.3.
Despite the upbeat figures uncertainty in Greece continued to loom over markets.
Greece has kept hopes of a debt deal alive all this week but has pushed back the actual debt swap agreement needed to secure a crucial second batch of funds to prevent Athens from defaulting.
Eurozone finance ministers are aiming to agree a second financing package for Greece on Monday.
On London’s blue chip index insurer Admiral was the highest climber, up seven per cent. BT was up 1.75 per cent after posting solid earnings. Meanwhile Imperial Tobacco was up 1.3 per cent.
Compass, the world’s largest catering group, was up 1.1 per cent.
On the financial service front hedge fund manager Man Group was the top riser, up 1.6 per cent. In banking Lloyds edged up 0.4 per cent, Barclays 0.5 per cent and RBS.
Overall the resources sector was pegged back with miner Rio Tinto down two per cent and BHP Billiton 1.6 per cent.
Engineers BG Group and Weir were also down by more than one per cent along with oil company Petrofac.
Shell shares also edged down after yesterday announcing a profits rise which was under forecasts.
Meanwhile Glencore and miner Xstrata — who yesterday announced a possible merger creating a company worth more than £50bn — both edged down.
In Asia the latest economic data from China showed the official Purchasing Managers Index for non-manufacturing sectors dipping to 52.9 in January from 56.0 in December.
The Nikkei closed down 0.5 per cent while the Hang Seng was flat.