(Alliance News) - London's FTSE 100 is expected to open higher on Wednesday, reversing some of the weakness seen earlier this week, ahead of the afternoon's US data.
While not the official nonfarm payrolls, Wednesday's ADP jobs report at 1315 GMT will provide an insight into the health of the US jobs market.
According to FXStreet cited consensus, there are expected to be 130,000 job additions, picking up from 113,000 in October.
The FTSE 100 is called to open 23.5 points higher, 0.3%, on Wednesday at 7,513.34. The blue-chip index had lost 23.12 points, 0.3%, at 7,489.84 on Tuesday.
Stocks in Asia were higher. The Nikkei 225 climbed 2.0% in Tokyo, China's Shanghai Composite was up slightly, while the Hang Seng in Hong Kong shot up 1.2%. The S&P/ASX 200 surged 1.7% in Sydney.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.2%, the S&P 500 down 0.1% and the Nasdaq Composite down 0.3%.
"US markets traded in a mixed-bag fashion, but the tone of the S&P 500 was rather moody, with losers outpacing winners by a wide margin - all as markets digest a stronger-than-expected November ISM Non-manufacturing survey offset by an unexpected significant decline in October job openings - and all resulting in yet another decline in 10-year Treasury yields," SPI Asset Management analyst Stephen Innes commented.
"Throughout November, markets increasingly factored in the possibility of the Federal Reserve implementing rate cuts next year. Despite a brief upward movement in yields on 10-year US Treasuries overnight, they have decreased by approximately 11 basis points by today's Asia open, indicating a renewed expectation of less restrictive monetary policy in the coming year."
Sterling was quoted at USD1.2604 early Wednesday, lower than USD1.2613 at the London equities close on Tuesday. The euro traded at USD1.0793 early Wednesday, lower than USD1.0809 late Tuesday. Against the yen, the dollar was quoted at JPY147.16 versus JPY147.10.
Gold was quoted at USD2,025.28 an ounce early Wednesday, higher than USD2,018.22 on Tuesday.
Brent oil was trading at USD77.18 a barrel early Wednesday, lower than USD78.49 late Tuesday.
In Wednesday's UK corporate calendar, there are full year results from Schroder European Real Estate Investment Trust, as well as half year results from System1 Group.
As well as the US ADP jobs data, the economic calendar for Wednesday has a UK construction PMI reading at 0930 GMT, followed by EU retail sales at 1000 GMT.
Later on Wednesday, Canada's central bank will make an interest rate decision.
By Harvey Dorset, Alliance News reporter
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