London pre-open: Stocks seen muted ahead of jobs data

London stocks were set for a muted open on Tuesday following strong gains in the previous session, ahead of the release of key UK jobs data.

The FTSE 100 was called to open just four points higher at 7,523.

The unemployment rate, claimant count and average earnings are all due at 0939 GMT.

The unemployment rate is expected to have edged up to 3.9% in the three months to October from 3.8%, while average earnings excluding bonuses are expected to have eased to 3.4% from 3.6%.

"It is worth noting, the latest CPI reading slipped to 1.5% - it’s lowest since late 2016. While average earnings are conformably above the CPI rate that should bode well for the British economy," said CMC Markets analyst David Madden.

In currency markets, the pound was weaker against the dollar and the euro as Prime Minister Boris Johnson set out to prevent parliament from extending the Brexit transition period beyond the end of next year, reviving the threat of a no-deal Brexit. Johnson plans to implement in law that the UK cannot extend the transition period.

Danske Bank said: "This supports our view that the no-deal risk is still present as Boris Johnson will not exploit his huge majority to be flexible on the end-2020 deadline for negotiating a trade agreement with the EU.

"This new legislation will eliminate the option of extending the transition by two years. In fact, this may at the end of the day turn out to be pure political symbolism, as the law can always be amended, but it shows Johnson is intent on honouring the Tory manifesto commitment to terminate the transition in just over a year from now."

In corporate news, consumer goods giant Unilever cautioned that full-year underlying sales growth would be “slightly below” guidance of the lower half of its 3-5% multi-year range.

"This is a result of challenges in the quarter in some markets, including the economic slowdown in South Asia, one of Unilever's largest markets, and trading conditions in West Africa remaining difficult," the company said.

Oilfield services firm Petrofac said full year group revenue for the full year was expected to be approximately $5.5bn.

The company reiterated forecasts for its exploration & construction unit, with revenue around $4.4bn and net margin at the low end of guidance.

"Looking further forward, we continue to expect a decrease in group revenue in 2020 reflecting low new order intake in recent years. We currently have $4bn of secured revenue for 2020, comprising $3.4bn in E&C and $0.6bn in engineering & production services," Petrofac said.

Bunzl said its expectations for the year were unchanged as the distribution and services group feels the effects of mixed macroeconomic and market conditions.