London pre-open: Stocks seen lower ahead of jobs data
London stocks were to drop at the open on Tuesday as investors eyed the release of key UK jobs data.
The FTSE 100 was called to open 15 points lower at 7,220.
Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: "The fading positive momentum in Britain’s blue-chip index is partly explained by a stronger pound. The 20-day negative correlation between the sterling and the FTSE has jumped up to 70% last month, as the pound tanked on no-deal Brexit worries.
"Although the negative correlation tends to ease with improved sterling, the FTSE could challenge the 7,200 mark, the 200-day moving average, on further pound recovery and mixed risk appetite across the global equity markets."
UK Prime Minister Boris Johnson suffered another defeat on Monday evening as his second call for a snap general election was rejected by MPs.
On the data front, the claimant count, ILO unemployment rate and average earnings are all due at 0930 BST.
Ozkardeskaya said the unemployment rate is expected to have remained steady at 3.9% in the three months to July, with stable average earnings growth of 3.7%.
In corporate news, Euromoney Institutional Investor said it had started a strategic review of its asset management businesses, which consist of BCA Research, Ned Davis Research and Institutional Investor.
“Euromoney has a well-established strategy to transition towards a 3.0 business-to-business information services company, which is reflected in the company's capital allocation,” the company said.
Cairn Energy swung to a first half profit on higher oil and gas output as it upgraded full year production forecasts.
The company reported a profit of $66.5m against a loss of $500.5m a year earlier as oil and gas sales revenue rose to $257m from $174.3m. Full year oil production guidance was upgraded to 21,000-23,000 barrels a day from 19,000-22,000.
Ashtead's first quarter revenues rose 17% to $1.3bn following strong growth in the US and Canadian markets, sending profits 9% higher.
Having invested a total of $717m in capital and bolt-on acquisitions in the period, the industrial equipment rental company added 27 new locations and remains confident in its medium-term prospects amid a continued focus on organic growth supplemented by targeted acquisitions.