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Market buzz: Americans may need to endure a little pain, president says
1700:Close Stocks have ended the session just slightly lower, despite cautious commentary from analysts regarding the ongoing trade tensions globally.
Sector-wise, water utilities and Electricity stocks were sought out for their defensive qualities (and following a recent rough-patch on a mix of concerns ranging from regulatory to political risks).
For their part, Deutsche Bank sounded a positive note on UK water stocks.
Other interest rate sensitive areas of the market were also wanted, such as Fixed Line Telecommunications, with BT possibly benefiting from positive comments from Down Under (Macquarie).
Grocers also did well, partly on the heels of upgrades from Berenberg for Tesco and ... WM Morrison.
Weighed down by those nagging trade concerns, Miners and Oilfield Services fared poorly, amid some talk that US shale may be next in Beijing's firing line, especially Ferrexpo and Hunting (on which Peel Hunt put out a note).
Regarding global trade, after the close of markets in London, Barclays is telling clients: "Market discomfort is set to continue, in our view, as a result of the return of volatility and with no end in sight of the anti-trade tit-for-tat. Barclays' global manufacturing confidence index eased for the third consecutive month in March, posing risks to our positive view on global growth.
"At this juncture, we think it is wise for market participants to take a break from risk and wait to see if this is just a pause that refreshes."
As for the weaker than expected US jobs numbers out today, for the moment at least economists at Capital Economics and Barclays seemed non-plussed.
FTSE 100 down 15.86 points at 7,183.64.
1637: In remarks to a New York radio programme, the US president has reportedly said that Americans may need to endure "a little pain" if the current dispute with Beijing turns into an all-out trade confrontation.
1558: Speaking to Bloomberg TV, White House economic adviser Larry Kudlow says US president is taking a "moderate, temperate" approach to China tariffs and that only increased "tariff pressures" were under consideration.
1404: "The earnings side of the report was strong, with average hourly earnings recording a healthy monthly increase. In all, we choose not to read too much into the March slowdown, and instead take a positive signal from the earnings side of the report. We continue to expect the Fed to raise rates three more times this year," says Pooja Sriram at Barclays of the US jobs numbers.
1403: US 10-year bond yield now down by four basis points to 2.7954%, S&P 500 futures however have trimmed earlier losses, down by 19.50 to 2,642.50.
1339: China says it will retaliate immediately if the US releases a list with an additional $100bn-worth of tariffs, adding that it has very detailed retaliatory measures already prepared, Bloomberg reports.
Significantly, the Ministry's spokesman, Gao Feng, reportedly also said that US and Chinese financial and economic officials had not had any negotiations on economic or trade issues "for a period of time".
It was impossible to have talks on the trade dispute under the current situation, he added.
And that's pretty much it, the media briefing is over now.
1333: Non-farm payrolls rose 103,000 in March from a revised 326,000 the month before and short of expectations for an increase of around 190,000.
February's gain was revised up from 313,000 but January's increase was revised down to 176,000 from 239,000.
Meanwhile, average hourly earning rose 2.7% on the year from 2.6% in February, in line with expectations, while the unemployment rate was flat at 4.1% versus expectations for a small drop to 4.0%.
1311: A slight delay to the Chinese Commerce Ministry's media briefing it seems, nothing yet. S&P 500 futures are 26.50 points lower versus a 20.0 point drop roughly three hours ago.
US non-farm payrolls due out at 1330 as well, with the consensus looking for 193,000 jobs, alongside a 0.2% month-on-month rise in average hourly earnings.
1250: Retailers were on the move on Friday as Citi adjusted ratings on several stocks as part of a broader note on European general retail.
Citi said it was not yet ready to turn more positive on the UK cyclical names as it recommended investing in online retailers rather than their bricks and mortar counterparts.
"E-commerce has significantly changed the retail landscape and we do not think this online revolution has finished. In fact, we argue that the tipping point is only just being reached at a number of our retailers and the market dynamics will get even tougher for them in the next few years."
M&S and Next were under pressure as the bank cut their ratings to 'neutral' from 'buy' and to 'sell' from 'neutral', respectively.
1207: China's Ministry of Commerce is set to make an announcement at 1300 BST, Reuters reports.
1110: JP Morgan says selling in BTG shares on Thursday was "excessive".
1109: BoA-Merrill strategists say their Bull&Bear indicator has retreated from danger "excess bull" levels seen in January, moving back to a 'neutral' level at 5.4.
"Markets stop panicking when policy makers start panicking": SPX tested, held 2550 lows as US admin "blinked" on trade war; GT30 >3%, US HY CDS 1200, DAX >12,000 all held too..."buy-the-dip" resumed; but as Trump again ups ante (another $100bn of China tariffs) linking popularity with protectionism, we still think "sell-any-rip" is a much better '18 strategy," they say.
1045: Within the context of a research note focused on the metals market, and commenting on the latest remarks on the trade front from the US president, Goldman Sachs is telling clients: "We acknowledge that there remains significant uncertainty and that tariff talks may continue to drive the market."
1044: Credit Suisse still positive on Lloyds. Analysts say: " [the lender] offering low risk, capital generative retail exposure with upside from improving macro, higher interest rates and falling risk-premium as Brexit negotiations progress."
1043: RBC weighing in with positive remarks on Petrofac and Wincanton, says contract awards are providing momentum in the former, while restructuring "leaves Wincanton better prepared to compete".
1042: Berenberg has upped Tesco and Morrison to 'buy' and 'hold', respectively. It said conditions in the sector are improving, with inflation headwinds easing and competitive pressures subsiding.
1041: Deutsche Bank prefers liquidity at the moment (pardon the pun), ups targets on Pennon, Severn, and United Utilities. Does the same with National Grid and SSE, but reiterates sell on SSE and Centrica.
1019: Unsurprisingly, three-month copper on the LME is slipping from $6,786 per tonne at yesterday's close to $6,768.
0852: After the close of US markets on Thursday, Trump said further tariffs were being considered "in light of China's unfair retaliation", leading China's commerce ministry to respond that it will "follow suit to the end and at any cost".
Thus, traders, such fans of such global narrative, have sent the FTSE 100 into the red on Friday morning.
The London open market report shows the FTSE 100 down 0.3% to 7,178.95, while the pound is down 0.1% versus the dollar to below 1.4 for the first time in nearly three weeks.
Analyst Jasper Lawler at London Capital Group said Trump's announcement "is the clearest sign yet that the world's two largest economies remain teetering on the brink of a trade war".
0832: There's been no time for investors to turn their attention to the US non-farm jobs report later as new news from the Trump White House emerges.
Reports say Trump is considering another $100bn in China-targeted tariffs, reigniting the trade war fears that had begun to abate on Thursday.
"Despite the chaotic trading - that was in part exacerbated by Easter Monday throwing the European calendar out of whack - the major indices are still all actually up on the week; a remarkable feat, but one that does reflect investors' acute sensitivity at the moment," says market analyst Connor Campbell at Spreadex
0828: In the wake of a sharp move higher in yields and commentators declaring the long-run bond bull market to be behind us, Rabobank wonders if bears are right and investigates these claims. First considering what was behind the bull market in the first place, Rabo's head of rates strategy, Richard McGuire, says from a "structural vantage", he believes the downward channel that has long described US 10-year yields "will remain intact for a good while yet".
He promised to take a more cyclical view of rates markets in his next piece and consider where US 10y yields are headed within this channel and whether higher supply (Trump tax reforms) and lower central bank demand (Fed balance sheet normalisation/ECB QE wind down) really is "a no-brainer bearish cocktail".
0747: More details are coming through from analysts on the potential bid for Shire from analysts attending a briefing from Japan's Takeda, where boss Christophe Weber said the "size did not matter for any 'mindful' acquisition" and suggested he was interested in a full takeover of Shire.
Deutsche Bank analysts said the "likelihood of a bid for the whole of Shire emerging by the April 25 deadline has increased" and there were a "number of options on the table for the deal structure . . . from an equity issuance in Japan, to a cash-plus-shares offer". Takeda could also look to try and offload unwanted Shire assets after any deal.
Bernstein's pharma analysts said a deal seemed "likely because there is willing buyer, willing sellers and room to meet both sides' expectations". Its survey of investors found they wanted £42 a share to start talks and would be willing to go up to £45 to seal the deal.
0741: Anglo American has been fined a $38m over pollution caused by the first of two leaks from an iron ore pipeline at its Minas Rio mine in Brazil last month and said another fine will be due over a second leak.