UK shares dropped as investors waited for the US non-farm payroll numbers this afternoon.
Footsie was twelve points lower at 6,735 with few investors willing to bet against the start of the rate tightening cycle in the US next month.
Jobs creation is one of the US central bank’s main criteria and if the number is in line with consensus forecast of around 220,000, many will draw the conclusion that a rate rise is imminent.
UK bank governor Mark Carney seemingly stepped back from earlier comments that rates here might rise in the New Year, but the mood is swinging towards tightening even so.
Overnight, Japan said it would not increase its money printing activities despite another weak quarter for the country’s economy.
On the company front, broadcaster ITV (LON:ITV) struggled after US media companies took a tumble overnight.
Shares fell 4.1% to 260p as ITV has been expanding its international base with acquisitions of US production studios.
Meanwhile, there were conflicting fortunes for housebuilder giant Bellway (LON:BWY) and High Street bookie William Hill (LON:WMH).
North-east based builder Bellway (LON:BWY) sold a record number of homes in the first half, buoyed by the “increasingly competitive mortgage finance”.
The forward order book is healthy at 4,568 houses valued at almost £1.1bn, which bodes well for the full-year outcome, it added. Shares were flat at 2,449p.
William Hill (LON:WMH) fell 6% to 387p. The bookie blamed new government legislation and write-downs as it saw pre-tax profit drop 35% to just £78.7mln (£121mln) and operating profit fall 12% to £155mln.
Shares in parcels and letters group UK Mail (LON:UKM) posted a 13% fall in early deals after it sounded the earnings alarm.
It slashed guidance after it said its move to a new fully automated facility in Coventry had "caused a greater level of customer churn and loss of volume than anticipated".
As a result, full-year pre-tax profits are expected to be in the £10-12mln range, well shy of £20.1mln predicted by the City.
Gossip today may centre round Irish paper giant Smurfit Kappa (LON:SKG) where those who claim to be in the know suggest US group International Paper may re-kindle its interest.
The American group was reported to be lining up a bid in April, but market chatter today was of an offer in the region of US$35-36 per share. Smurfit shares were little changed at €27.72.
In small caps, AorTech (LON:AOR) rose by a third to 34.4p as revenues doubled to US$844,000 at the medical device provider in the year to March as losses more than halved to US$326,000.
Getech (LON:GTC) ROSE 9% to 50.5p as it said the year to July would show “a very significant year on year improvement.”
Pre-tax profits are expected to double to £2mln with a 29% rise in revenues.
Sound Oil (LON:SOU) is to change its name to Sound Energy to reflect the increasing importance of gas in its portfolio. Shares rose 4.35% to 17p.
Elsewhere, Petro Matad (LON:MATD) will next month kick off a surveying programme designed to’ high-grade’ exploration prospects for a fresh round of exploration drilling. Shares climbed 3% to 4.25p.