London pre-open: Stocks to fall after UK jobs data, ahead of US inflation

London stocks were set to fall at the open on Tuesday as investors mulled the latest UK jobs data and looked to the release of US inflation figures.

The FTSE 100 was called to open 15 points lower at 7,458.

CMC Markets analyst Michael Hewson said: "As we look ahead to today’s European open the main focus will be on US CPI numbers for August, followed by PPI tomorrow, as hopes grow that we may well have seen the peak, in the US at least."

On home shores, data from the Office for National Statistics showed that the unemployment rate fell to 3.6% in the three months to July from 3.8% in the previous quarter, hitting its lowest level since 1974. Economists were expecting the rate to be unchanged.

Meanwhile, total pay including bonuses rose 5.5% on the year, up from 5.2%, while regular pay grew 5.2%, up from 4.7%. In real terms, however, total pay fell 2.6% and regular pay was down 2.8%.

In corporate news, Ocado Retail said it expected a small fall in annual sales as customers started to tighten their belts amid the cost-of-living crisis.

The joint venture between Ocado Group and retailer Marks & Spencer also said it now expected close to break-even core earnings. It had previously forecast low single digit revenue growth and a low single digit profit margin.

Media company Future said that the "encouraging performance" detailed by the group in its June trading update had continued despite operating within a "challenging macro" environment.

Future said that full-year adjusted operating profits were projected to be at the "top end" of market expectations of £266.4m to £270.7m after it witnessed a return to organic audience growth in the second half, with Covid comparators fully lapped.