Sterling, British shares under pressure from Scottish vote
By Lisa Twaronite
European shares are expected to enjoy a firm tone on the whole, following gains on Wall Street, with German shares seen rising up to 0.4 percent and French shares as much as 0.2 percent.
Britain's shares are seen less fortunate, however, with spreadbetters seeing a flat to weaker opening after a poll showed the "yes" to Scottish independence campaign on 51 percent against 49 percent for the "no" camp ahead of the Sept 18 referendum.
Sterling also shed 0.8 percent to $1.6208 after sliding as low as $1.6165 in early trade, the lowest since last November and the biggest daily drop in eight months.
Apart from that, share prices are generally supported after traders interpreted downbeat U.S. jobs report as suggesting the Federal Reserve will hold off on hiking interest rates anytime soon.
The S&P 500 hit a fresh closing high on Friday after data on Friday showed U.S. nonfarm payrolls grew by only 142,000 last month, far below the 225,000 forecast by analysts in a Reuters poll.
The Nikkei stock average climbed about 0.2 percent, shrugging off data that showed Japanese economy fell into a deeper hole in the second quarter.
In contrast to sterling's sharp moves, other major currencies were treading water. The dollar was steady on the day at 105.13 yen, remaining shy of its near six-year high of 105.71 touched on Friday.
On the commodities front, spot gold was flat at $1,268.61 an ounce, well above a three-month low of $1,256.90 hit on Friday before the U.S. jobs data.
Brent crude edged up 0.1 percent to $100.96 a barrel, after having posted its third weekly drop in four weeks.