Markets head sideways ahead of US jobs report

Global stock markets were in wait-and-see mode on Thursday, anticipating Friday's release of a US jobs data which if strong could encourage an interest rate hike by the Federal Reserve. US stocks ended the day more or less unchanged while shares in London fell as the pound rallied on figures putting British manufacturing activity at a 10-month high in August. A stronger pound tends to hurt London's benchmark FTSE 100 index, which closed down 0.5 percent, because it comprises many companies involved in international trading and commodities exposed to the currencies market. "The FTSE is underperforming...driven by a combination of a stronger pound and further downside pressure on commodities," said Craig Erlam, senior market analyst at Oanda trading group. In the eurozone, Frankfurt's DAX dipped 0.6 percent, while the CAC 40 in Paris was flat. In the US, unemployment insurance claims remained low and pointed to continued firmness in the jobs market. But the Institute for Supply Management reported that the US manufacturing sector contracted last month. The International Monetary Fund on Thursday also said it planned to downgrade US economic forecasts in October, warning generally of a global "low-growth trap" if G20 governments meeting this weekend in China failed to act decisively and soon. The Dow Jones Industrial Average ended up 0.1 percent while the S&P 500 was virtually unchanged and the Nasdaq Composite rose 0.3 percent. Twitter added 1.5 percent following Wednesday's 4.5 percent gain on rising speculation the social messaging service could be a takeover target. Tesla shares sank 5.3 percent after reports will need to raise capital through a new share issue. It was also hit by news early Thursday of a launch pad explosion that destroyed a rocket of Tesla founder Elon Musk's ambitious SpaceX private space Technology company. - British manufacturing picks up - Britain's manufacturing activity hit a 10-month high in August, with the Markit PMI hitting 53.3, up from a 41-month low at 48.3 in July. But separate Markit PMI data revealed a slowdown in the eurozone's manufacturing sector. Oil prices weakened further, with sentiment weighed down by a sharp rise in US crude stockpiles, dealers said. In New York, a barrel of West Texas Intermediate crude for October delivery finished down $1.54 at $43.16. North Sea Brent, also for October delivery, fell $1.44 to settle at $45.45 per barrel on the Intercontinental Exchange in London. In Asia, indices were mixed after a surprise pick-up in Chinese factory activity that indicated stability in the world's number two economy -- but fuelled fears that authorities would hold off from introducing fresh stimulus. Beijing said its purchasing managers index of manufacturing activity hit 50.4 last month, its highest level since October 2014 and suggesting the economy is stabilizing following a series of policy tweaks aimed at kick-starting growth. - Key figures around 2100 GMT - New York - DOW: UP 0.1 percent at 18,419.30 (close) New York - S&P 500: UNCHANGED at 2,170.86 (close) New York - Nasdaq: UP 0.3 percent at 5,227.21 (close) London - FTSE 100: DOWN 0.5 percent at 6,745.97 points (close) Frankfurt - DAX 30: DOWN 0.55 percent at 10,534.31 (close) Paris - CAC 40: UP 0.03 percent at 4,439.67 points (close) EURO STOXX 50: DOWN 0.3 percent at 3,017.49 points (close) Tokyo - Nikkei 225: UP 0.2 percent at 16,926.84 (close) Shanghai - Composite: DOWN 0.7 percent at 3,063.31 (close) Hong Kong - Hang Seng: UP 0.8 percent at 23,162.34 (close) Euro/dollar: UP at $1.1199 from $1.1156 late Wednesday Dollar/yen: DOWN at 103.23 yen from 103.43 yen Pound/dollar: UP at $1.3270 from $1.3128