London pre-open: Stocks seen down as investors mull jobs data

14th May 2024 07:30

(Sharecast News) - London stocks were set to edge lower at the open on Tuesday as investors mulled data showing the UK jobs market is cooling.

The FTSE 100 was called to open down around 10 points.

Figures released earlier by the Office for National Statistics showed that the unemployment rate ticked up to 4.3% in the three months to March from 4.2% a month earlier, in line with expectations.

Meanwhile, regular earnings excluding bonuses were up 6% in the last year, while total pay including bonuses rose 5.7%. Both were unchanged on the month.

ONS director of economic statistics, Liz McKeown, said: "We continue to see tentative signs that the jobs market is cooling, with both employment from our household survey and the number of workers on payroll showing falls in the latest periods.

"At the same time the steady decline in the number of job vacancies has continued for a twenty-second consecutive month, although numbers remain above pre-pandemic levels.

"With unemployment also increasing, the number of unemployed people per vacancy has continued to rise, approaching levels seen before the onset of Covid-19.

"Earnings growth in cash terms remains high, with the recent falls in the rate now levelling off while, with inflation falling, real pay growth remains at its highest level in well over two years."

In corporate news, telecoms giant Vodafone posted slightly better annual results than forecast as it continued to offload businesses and move towards its tie-up with rival operator Three.

Operating profit fell 74.6% to €3.7bn, mainly as a result of disposals in the prior financial year, in particular the €8.6bn gain on disposal of Vantage Towers.

Electricals retailer Currys lifted its full-year profit expectations as it hailed a return to like-for-like sales growth.

In an update for the year to 27 April, the company said group LFL sales return to growth, up 2% in the 16 weeks since the peak trading period.

Full-year pre-tax profit excluding the Greek business is now expected to be between £115m and £120m, up from previous guidance of "at least" £105m.

Flutter Entertainment reported a net loss of $177m in its first quarter, primarily due to non-cash charges including acquired intangibles amortisation and fair value changes in its Fox Option liability.

Despite that, group adjusted EBITDA increased 46% to $514m, driven by strong performance in the US market and international expansion efforts.

The FTSE 100 company said it was confident in its 2024 financial guidance, despite challenges in US sports results towards the end of March.

Anglo American announced a number of "structural changes" to simplify its portfolio that it hopes will unlock significant value for shareholders, including the divestment or spin-off of its steelmaking coal, nickel, platinum and diamond operations.

Following an asset review which started last year, the mining giant said it is now focusing on just three main divisions: copper, premium iron ore and crop nutrients.

"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," said chief executive Duncan Wanblad.