The FTSE 100 traded slightly lower on Friday as markets awaited the latest U.S. non-farm payrolls report ahead of the Federal Reserve’s Sept. 16 policy meeting.
The FTSE 100 was down 0.04% as of 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.10% and France’s CAC 40 rose 0.04%.
Sterling strengthened against the U.S. dollar, with GBP/USD up 0.13% at 1.3542.
U.S. Employment Data in Focus
Consensus forecasts point to an increase of 55,000 U.S. non-farm payrolls for August, compared with a decline of 23,000 in July. The unemployment rate is expected to remain at 4.1%.
Analysts at ING said comments from Federal Reserve Governor Waller pushed U.S. Treasury yields lower on Thursday before a stronger ISM services reading subsequently sent yields higher.
ING said a payrolls increase below 25,000, combined with benign core CPI of less than 0.2% month-on-month next week, would likely be required to delay an interest-rate increase.
Friday marks the Federal Reserve’s final communication before its blackout period ahead of the Sept. 16 policy decision.
Middle East Developments Remain in Focus
South Korea’s presidential office said it was considering “contributions” to U.S.-led security efforts in the Strait of Hormuz, while adding that “nothing has been decided yet.”
Vice President JD Vance told a White House briefing he was “extremely skeptical” that Iranian claims that a U.S. strike had hit a wedding party were accurate. Asked whether fighting would end by the midterms, he added “I wouldn’t call it a war”.
Treasury Secretary Scott Bessent said the European Union had “officially” joined the U.S.-led “Operation Economic Outcast” sanctions campaign against Iran. Bessent reiterated that the campaign aims to “sever every economic lifeline” sustaining Tehran.
Traffic through the Strait of Hormuz remained below levels recorded before the conflict, with 102 transits last week compared with more than 130 per day previously. Tanker operators continued to route oil through a U.S.-guided southern corridor near Oman.
Iranian officials said a recent series of U.S. strikes killed at least 18 people and wounded 142. The Wall Street Journal reported that U.S. President Donald Trump was privately considering declaring the war over while the Pentagon extended troop deployments in the region.
Oil Prices Rise While Gold Declines
Brent crude rose 0.45% to $95.90 a barrel, while WTI increased 0.43% to $91.68.
Gold futures declined 0.57% to $4,514.15, while spot gold fell 0.13% to $4,467.71.
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