London pre-open: Stocks to drop ahead of key jobs data
London stocks were set to edge lower at the open on Tuesday as investors eyed a slew of key UK jobs data.
The FTSE 100 was called to open down 16 points at 7,695 ahead of the ILO unemployment rate, average earnings and the claimant count rate at 0930 BST.
CMC Markets analyst Michael Hewson said: "Most of the headlines in the past few months have been about job losses in retail as well as construction yet thus far the unemployment numbers have continued to come down, at 4.2% last month, and it is expected to stay at this level in the latest March numbers.
"On the wages front for the three months to March weekly earnings including bonuses are expected to rise to 2.9%, however on the headline numbers we are expecting to see a fall to 2.6% from 2.8%. This fall certainly doesn’t tie in with some of the employer business surveys we are seeing which suggests wages are rising on the back of a tightening labour market."
Investors will also be digesting the latest data out of China, which showed industrial production was better than expected in April, although investment slowed. Industrial output was up 7% compared to a year earlier, versus expectations for a 6.4% rise, while retail sales expanded by 9.4%, undershooting expectations for a 10% jump. Fixed-asset investment was up 7% on the year in the first four months, compared to an estimated 7.4%.
In corporate news, international marketing and support services group DCC said full year pre-tax profits rose 26.6% to £316.4m as revenues increased 16.3% to £14.2bn.
The company spent £670m on acquisitions during the year which DCC said would provide further opportunities for both organic and acquisitive growth for the group
The final dividend has been lifted 10.0% to 82.09p a share for a total of 122.98p a share.
Landsec announced the appointment of Cressida Hogg as its non-executive chairman on Tuesday, with effect from completion of the company’s annual general meeting on 12 July.
The FTSE 100 firm said Hogg was succeeding Dame Alison Carnwath, who would retire from the board on that date, having joined in 2004 and become chairman in 2008. It had announced Dame Alison's intention to retire on 2 March. Hogg joined the Landsec board in January 2014, and had been appointed as chairman following a thorough selection process which included external candidates.
Vodafone returned to profit in the year to March and guided to further growth ahead despite revenue being held back by increased competition in Italy and Spain.
Full year numbers came in just ahead of City forecasts, with revenue falling 2.2% year-on-year to €46.6bn but beating the average estimate of €46.2bn, while adjusted earnings before interest, tax, depreciation and amortisation increased 11.8% to €14.7bn and pipped the €14.5bn consensus.