FTSE 100 to open higher; US ADP jobs report eyed

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The FTSE 100 is expected to open higher on Wednesday as markets look set to rebound from yesterday’s slump.

Spread-better IG expects the FTSE 100 to start around 41 points higher following Tuesday’s 101 point fall to 5,862.

The FTSE 100 looks set to take its lead from the strong performance from Wall Street overnight, which saw the Dow Jones Industrial Average close 0.76% higher at 28,645 while the S&P 500 climbed 0.75% to 3,526 and the Nasdaq rose 1.39% to 11,939.

Markets in Asia were more mixed on Wednesday, with Japan’s Nikkei 225 up 0.22% while Hong Kong’s Hang Seng fell 0.51% following news that Australia has entered its first recession in just under 30 years.

The US ADP job figures, which are due at 1.15pm UK time and expected to show 950,000 jobs were added last month, up from 167,000 in July, may serve as a signal for some investors to push higher in the afternoon. Traders may also keep an eye on Bank of England governor Andrew Bailey’s testimony before the UK Treasury Select Committee at 2.30pm.

On currency markets, the pound was trading relatively flat against the dollar at US$1.338, with the ADP jobs report potentially providing a movement catalyst ahead of the critical US non-farm payroll report on Friday.

Significant announcements expected on Wednesday:

Finals: Barratt Developments PLC (LON:BDEV), Mattioli Woods PLC (LON:MTW)

Interims: The Gym Group PLC (LON:GYM), Concurrent Technologies PLC (LON:CNC), Johnson Service Group plc (LON:JSG), Uniphar PLC (LON:UPR), Woodbois Limited (LON:WBI)

Economic data: UK house prices, US ADP unemployment

Around the markets:

Sterling: US$1.338, down 0.03%

Brent crude: US$45.99 a barrel, up 0.88%

Gold: US$1,963 an ounce, down 0.4%

Bitcoin: US$11,897, up 1.58%

6.45 am: Early Markets: Asia / Australia

Mainland Chinese stocks were mixed by the afternoon, with the Shanghai composite down 0.11% while Japan’s Nikkei 225 gained 0.47%.

South Korea’s Kospi added 0.3% but Hong Kong’s Hang Seng index slipped 0.05%.

Australia’s S&P/ASX 200 led gains among the region’s major markets as it surged 1.74%.

However, the country’s GDP fell 7% in the June quarter, its largest quarterly fall on record according to the Australian Bureau of Statistics.

Proactive Australia news:

Australia is a hothouse for growth companies with some of the country’s most innovative businesses going on to achieve major international success.

A showcase for the latest generation is provided by the ASX Small and Mid-Cap Conference (ASX Ltd – ASX:ASX), which this year is taking place virtually from September 8-10.

Wiluna Mining Corporation Ltd (ASX:WMX) (OTCMKTS:WMXCF) has been as much as 30% higher after fielding hits of up to 5.96 metres at 112.98 g/t from 230.44 metres in resource development infill drilling at the Wiluna Mining Centre.

XTEK Ltd (ASX:XTE) has completed an oversubscribed share purchase plan (SPP) to raise $2.9 million, taking overall capital raising funds to $12 million.

Great Boulder Resources Ltd (ASX:GBR) has extended the closing date for its non-renounceable entitlement offer aimed at raising up to $960,000 by five business days to Friday, September 11.

YPB Group Ltd’s (ASX:YPB) CONNECT codes, which confirm product authenticity, will be used in NATURE ONE DAIRY®’s (NOD) nutritionally enhanced milk powders, including baby formula, across South East Asia.

Blackstone Minerals Ltd (ASX:BSX) has intersected further high-grade massive sulphide nickel-copper-PGE mineralisation at Ban Chang, which forms part of the Ta Khoa project in Vietnam.

Kin Mining NL(ASX:KIN) has received strong results from recent aircore drilling revealing that East Lynne prospect at Cardinia Gold Project (CGP) in Western Australia continues to the south and now extends for more than 1.3 kilometres of strike length.

Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) has completed EPCM phase two work for the Colluli Potash Project in Eritrea, East Africa, with the updated FEED and schedule providing a more defined scope and de-risked design.

FYI Resources Ltd (ASX:FYI) has met target grade expectations of >99.99% ultra-high purity alumina (HPA) with recently completed stage-two continuous trial production of HPA from its pilot plant.

VIP Gloves Ltd (ASX:VIP) is set to enjoy strong revenue and earnings growth in the next two financial years as four new production lines come on-stream progressively and demand for gloves continue in a post-COVID 19 setting.

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