FTSE 100 flat as oil rises and US jobs data looms

London’s FTSE 100 slipped about 0.1% on Friday as investors avoided large bets ahead of the US August jobs report, leaving the index largely flat during a cautious European session.

Germany’s DAX rose 0.1%, France’s CAC 40 fell 0.2% and the pan‑European STOXX 600 eased 0.1% to 648.67.

Market focus was on the US payrolls release. Consensus forecasts pointed to a 55,000 rise in nonfarm payrolls for August after July’s 23,000 decline, with the unemployment rate expected to remain at 4.1%. Fed governor Christopher Waller’s dovish remarks on Thursday helped push Treasury yields lower. Analysts at ING wrote that a payroll gain below 25,000, together with a benign core inflation reading next week, may be needed to materially delay another Fed rate increase.

Sterling strengthened to about $1.3542 in early London trade, creating a mild headwind for the FTSE because many large constituents earn revenues in dollars and other currencies that convert back into pounds.

Brent crude traded near $96 a barrel and was set for its strongest weekly gain since mid‑July as renewed US‑Iran tensions kept supply risks elevated. Higher crude prices supported energy stocks, while rising fuel costs added to inflationary pressures that could constrain central bank easing.

Economically sensitive sectors underperformed in early European trade, with chemicals and banks each down close to 1%.

Volkswagen rose about 7% after its supervisory board approved a restructuring plan that includes roughly 50,000 additional job cuts to reduce costs and simplify operations. RBC Capital Markets analyst Tom Narayan described the unanimous backing as ‘encouraging and a positive surprise’, while keeping an Outperform rating and a €120 price target and noting substantial execution work remains.

Traders in London balanced gains in energy names against the effects of a firmer pound and uncertainty over future interest rates, leaving the FTSE largely flat as markets awaited US payrolls and further central bank commentary.