Last checked at 
(Alliance News) - Stocks in London are expected to edge up at Tuesday's open, as investors weigh the latest economic data from the UK and Asia.
The latest UK jobs print is likely to be another "mixed bag" for the Bank of England. The unemployment rate unexpectedly rose to 4.2% in the three months to June, but wage inflation also increased more quickly than expected.
The pound jumped back above the USD1.27 mark shortly after the reading. This suggests the market believes the bank will be troubled by the rising wages, and more likely to continue hiking interest rates.
Meanwhile, Chinese equities were struggling in Shanghai and Hong Kong, following yet more weak economic data. A slowing in growth of retail sales and industrial production in July prompted the country's central bank to cut its medium-term lending facility rate.
There was better data in Japan, however, following a stronger-than-expected economic growth print, and rising industrial production in June.
In early UK company news, Legal & General reported a stable operating performance, but interim profit took a hit from investment losses. Marks & Spencers shared an improved outlook for its financial year.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 9.0 points, 0.1%, at 7,516.15
----------
Hang Seng: down 0.7% at 18,641.26
Nikkei 225: closed up 0.6% at 32,238.89
S&P/ASX 200: closed up 0.4% at 7,305.00
----------
DJIA: closed up 26.23 points, 0.1%, at 35,307.63
S&P 500: closed up 0.6% at 4,489.72
Nasdaq Composite: closed up 1.1% at 13,788.33
----------
EUR: down at USD1.0909 (USD1.0918)
GBP: up at USD1.2713 (USD1.2690)
USD: up at JPY145.49 (JPY145.31)
Gold: down at USD1,904.91 per ounce (USD1,909.82)
Oil (Brent): down at USD86.23 a barrel (USD86.47)
(changes since previous London equities close)
----------
ECONOMICS
----------
Tuesday's key economic events still to come:
11:00 CEST Germany ZEW indicator of economic sentiment
11:00 IST Ireland goods exports and imports
08:30 EDT US import and export price index
08:30 EDT US retail sales
08:55 EDT US Johnson Redbook retail sales index
10:00 EDT US NAHB housing market index
10:00 EDT US manufacturing and trade
16:30 EDT US API weekly statistical bulletin
----------
The UK jobless rate rose to 4.2% in the three months to June. Market consensus, as cited by FXStreet, had expected it to remain unchanged from 4.0% in the three months to May. Also in the three months to June, annual growth in average total pay, including bonuses, accelerated to 8.2% from the upwardly revised figure of 7.2% in the previous three-month period. June's figures overshot FXStreet-cited consensus of 7.3%. "This total growth rate is affected by the NHS one-off bonus payments made in June 2023," the ONS noted. Still, excluding bonuses, average earnings rose 7.8%, compared to the upwardly revised reading of 7.5% in the previous month. June's rise was above the consensus of 7.4%. The previous month's wage inflation figures were initially recorded as 6.9% including bonuses, and 7.3% excluding bonuses.
----------
BROKER RATING CHANGES
----------
Berenberg cuts Bellway price target to 2,500 (2,700) pence - 'hold'
----------
Barclays cuts Prudential price target to 1,575 (1,700) pence - 'overweight'
----------
COMPANIES - FTSE 100
----------
Legal & General raised its dividend and said it was on track to meet its financial targets, despite a hit from investment losses. In the first half, L&G said pretax profit was GBP324 million, down 53% from GBP697 million a year before. This was largely due to around GBP617 million in investment losses, with operating profit only falling 1.8% to GBP941 million from GBP958 million. "[Legal & General Retirement Institutional] and [Legal & General Capital] performed strongly, [Legal & General Investment Management] results stabilised, and Retail's performance - while impacted by competition in some areas - was bolstered by growing annuity sales and progress in US protection," L&G said. L&G raised its dividend to 5.71 pence up from 5.44p a year before, and said it intends to grow the dividend at 5% each year to 2024. The firm said it was on track to achieve its five-year ambitions for the 2020 to 2024 period.
----------
COMPANIES - FTSE 250
----------
Marks & Spencer said it now expects the outcome for its financial year to show profit growth from the prior year, and expects its interim results to reveal a "significant" improvement from previous expectations. The retailer said it has seen "continued market share growth" in Clothing & Home as well as Food in the first 19 weeks of its financial year. Like-for-like Food sales grew over 11% in the 19 weeks to August 12, as the firm invested in quality and "sharpened" prices on its value lines. Like-for-like sales in Clothing & Home grew over 6%, with strong growth in stores offset by more "subdued" growth online. "Overall, group operating margin has continued to be robust, driven by strong store performance and enhanced by our store rotation and renewal programme," M&S said.
----------
OTHER COMPANIES
----------
National Australia Bank announced plans for a AUD1.5 billion, about USD975.5 million, as part of an effort to manage down its capital ratio, while also providing a trading update for its financial third quarter. The Melbourne-based lender said its common equity tier 1 ratio was 11.9% on June 30 at both Level 1 and Level 2, down from 12.2% on March 31, though up from 11.6% a year ago. NAB aims to lower its CET 1 ratio to a target range of 11.0% to 11.5%. NAB said the buyback will reduce it to 11.5% at Level 1 and 11.6% at Level 2. NAB also reported an unaudited statutory net profit of AUD1.75 billion in the three months that ended June 30, the bank's financial third quarter, down 5.4% from AUD1.85 billion a year ago. For the first half of the current financial year, the bank had reported net profit of AUD3.97 billion. Net interest margin declined by 5 basis points compared to the first half of the year, to 1.72%, and revenue slipped by 2% mostly as a result of this, NAB said. Expenses increased by 3% due to higher staff costs and investment in technology. NAB didn't provide actual figures for revenue and expenses in its trading update.
----------
CSL reported slightly lower annual profit as costs increased faster than revenue. The Melbourne, Australia-based biotechnology firm said in the financial year that ended on June 30, net profit decreased 0.5% to USD2.24 billion from USD2.26 billion a year prior. This was due to rising costs, while revenue grew 26% to USD12.78 billion from USD10.14 billion. The company declared a final dividend of USD1.29 per share, up 9.3% from USD1.18 a year ago. This brings the total dividend to USD2.36 per share, up 6.3% from USD2.22 a year before. Looking ahead, Chief Executive Officer Paul McKenzie, who has been in the role since March, said he is optimistic about CSL, as the company focuses on the "next phase of growth".
----------
By Elizabeth Winter, Alliance News senior markets reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
