FTSE 100 ekes out gains in cautious trade ahead of NFP By Investing.com

By Samuel Indyk

Investing.com – The FTSE 100 trades with slight gains heading towards the North American crossover with financials leading the way higher. News flow has been relatively quiet although comments from the Bank of England Deputy Governor Ben Broadbent have garnered attention. Following the Bank of England decision yesterday, markets are pricing out the prospect of negative interest rates in the near term, however, Broadbent said that all options remain open should further stimulus be warranted.

With negative rates in the UK looking further away today than they did yesterday, the banks have benefitted with Lloyds Banking Group PLC (LON:LLOY) once again top of the blue-chip index for the second consecutive day.

Royal Dutch Shell PLC Class A (LON:RDSa) shares have staged a rebound after falling following earnings yesterday. The move comes as oil prices reached their highest level in a year following the OPEC+ meeting earlier in the week. The cartel rolled over existing supply cuts and the lower supply alongside prospects for higher demand in the future have kept prices elevated.

Pearson PLC (LON:PSON) props up the index as the heavily shorted stock pares back all the gains seen from the Reddit squeeze last week.

GBP has gained against the USD but trades relatively flat against the EUR as markets look ahead to two events: Friday’s nonfarm payrolls report and a speech by the Bank of England Governor Bailey. Expectations are for the US to have created 50K jobs in January although some are forecasting a higher figure following improving jobless claims data and strong employment components in the recent ISM surveys.