The week will end with a distinctly US flavour as the latest set of US non-farm payrolls arrives, although the UK will not be left out as it releases its construction PMI.
However, the American focus will not stop at economic data as investors will be looking for any signs of payoff from gambling firm Paddy Power’s merger of its US operations with fantasy sports group FanDuel as it issues a trading update.
Payrolls to end the week
The surprisingly weaker number of US jobs created during September did not at the time put much concern into the market as investors focused on the steadily improving rate of wage growth.
For October there is an expectation that jobs growth could bounce back closer to the 200,000 level, while hourly wage growth could hit above 3%.
If so, then even more focus and expectation will be on the Federal Reserve to increase the pace of monetary tightening., although currently unstable financial markets may not like that.
US is the word for Paddy Power Betfair
Shares in FTSE 100-listed betting firm Paddy Power Group PLC (LON:PPB) have struggled this year in common with most of the sector, due mainly to increased taxes in the UK and elsewhere.
However, on a positive note, the recent merger of Paddy Power Betfair’s US operations with fantasy sports group FanDuel has raised hopes of growth and any further update on that will be of interest.
Investors will be paying especially close attention to any full-year earnings guidance for the betting firm given that it was lowered in August to £460mln-£480mln.
Significant announcements expected:
Friday November 2:
Trading update: Paddy Power Betfair plc (LON:PPB), Glencore PLC (LON:GLEN)
Interims: TP-ICAP PLC (Q3) (LON:TCAP), System1 Group PLC (LON:SYS1)
Economic data: UK construction PMI report; US non-farm payrolls, average earnings; US balance of trade; US factory orders