The end of the first full trading week of 2020 will bring the final 2019 data on US jobs, with December's figures coming in a week later than normal due to the festive period.
The numbers could provide some insight into the likelihood of any interest rate increases from the Federal Reserve in 2020, as a strong jobs market and wage growth are both triggers for central bank hikes.
Capital Economics expects this set of data to show a 150,000 gain in non-farm payrolls, as the latest ADP data revealed a 202,000 gain in December’s private employment.
Last month the payrolls showed the addition of 266,000 jobs, the best initial figure since January 2019.
Meanwhile, wages rose 3.1% to US$28.29 an hour year-on-year in November, so if these trends continue traders will likely expect the Fed to consider further rate rises soon.
JD Sports still in fashion
The main corporate event in the City will be JD Sports Fashion PLC’s (LON:JD.) post-Christmas trading statement.
Analysts see the FTSE 100-listed ‘athleisure’ retailer as one of the winners in the changing UK clothing retail market, with its September interims beating market expectations with a 10% increase in like-for-like sales in the UK and a 7% rise in pre-tax profits.
The bar is set high for Christmas, although some say profit margins could be squeezed by pre-Boxing Day sales.
According to the Share Centre, there are reports the company executed a good strategy for Black Friday prompting optimism for the festive period.
“The shares were hit temporarily in December when the majority share owner, the Pentland Group, sold a significant number of shares, but they quickly recovered,” analysts said.
There may also be updates on the investigation into the completed acquisition of trainer retail chain Footasylum carried out by the Competition & Markets Authority, currently on phase 2, which could force shop closures to get clearance or even block the deal completely.
Decent quarter for B&M
Elsewhere on the high street, B&M European Value Retail SA (LON:BME) will also issue a third-quarter update on Friday.
Analysts at Peel Hunt think it will reflect a decent quarter for B&M, albeit up against easy comparatives, with like-for-like (LFL) sales growth to remain around the 3% mark seen for the second half.
In a preview, they noted that new stores openings have been a real plus for B&M over the last few years and they also expect the strong performance there to have continued.
The analysts concluded: "We are likely to be updated on the German situation and the possible roll-out of Frozen food to more stores, and an update on a possible special dividend may be included as well. It should be an interesting update from a very interesting company."
Significant announcements expected on Friday:
Trading announcements: JD Sports Fashion PLC (LON:JD.), B&M European Value Retail (LON:BME)
Economic data: US non-farm payrolls