Oil rises again as non-farms loom

London has made modest gains this morning, with the FTSE 100 up 20 points, as investors await key US job numbers.

- Markets steady in early trading
- Just Eat boosts its presence overseas
- US employment figures to set the afternoon tone

Yesterday’s choppy moves on the overall FTSE 100, with the index sitting in a 100-point range for most of the session, masked a remarkable move higher in mining shares and other heavily shorted names. Despite the best efforts of investors however, the bounce failed to push on significantly this morning. Corporate data is relatively thin on the ground, at least in the heavyweight FTSE 100, with the mining sector edging lower as some of Thursday’s bounce is given back. A 1% move higher in oil is helping to keep indices on the positive side of the ledger, but with US job numbers and the end of the week looming, it is not surprising to see caution dominate over any lingering desire for swashbuckling risk appetite. Just Eat’s expansion further into continental Europe was welcomed by shareholders, as it gives the firm a broader base for its revenues. The shares have done well since listing, but as with all internet firms, there is always a risk of new entrants taking away business from leaders like Just Eat. Trading at 40 times earnings, there is little room for disappointment in the valuation, meaning the company needs to keep up its expansion efforts.

US job numbers will dominate the day, with 190,000 jobs expected to have been added in January. Any number above this, ideally combined with a healthy wage growth number, could rescue the US dollar from the doldrums and potentially reignite hopes of a 2016 rate move by the Fed. Conversely, poorer figures will set the dollar moving lower, with equity markets likely to follow suit on increased fears of weaker US economic growth. Ahead of the open, we expect the Dow to start at 16,453, 47 points up on yesterday’s close.