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

(Sharecast News) - London stocks were set to rise at the open on Tuesday following a solid session in Asia, as investors mull the latest UK jobs data.

The FTSE 100 was called to open 60 points higher at 7,092.

CMC Markets analyst Michael Hewson said: "Despite moving lower yesterday European markets still seem less vulnerable than those in the US, though that's largely down to the fact they are also cheaper.

"As we look ahead to today's European open, which looks set to be a positive one, after a decent move higher in Asia, today's main focus is expected to be on the latest UK unemployment numbers."

Figures released earlier by the Office for National Statistics showed that the unemployment rate nudged down to 4.8% in the three months to March from 4.9% previously.

ONS director of economic statistics Darren Morgan said: "The number of employees on payroll rose strongly in April as the economy began to reopen, continuing the improvement from its November trough. There remains, however, three-quarters of a million people fewer on the payroll compared with the pre-pandemic peak.

"With many businesses reopening, the recent recovery in job vacancies continued into April, especially in sectors such as hospitality and entertainment.

"The renewed lockdown at the beginning of 2021 saw a sharp rise in the number of previously unemployed people no longer looking for work, helping the unemployment rate to fall on the quarter. This mirrored what happened during the first lockdown."

In corporate news, food producer and supplier Cranswick lifted its dividend after reporting a 10.4% rise in annual profits.

The company said pre-tax profit came in at £114.8m from £104.0m a year ago on revenues up 13.9% to £1.9bn. It lifted the full year dividend by 15.9% to 70.0p a share, marking 31 years of unbroken dividend growth.

Cranswick said it had not encountered any problems from Brexit, but said it was experiencing continuing "short term challenges relating to the supply of products to Northern Ireland and in securing Export Health Certificates".

Elsewhere, Phoenix Group confirmed it is in advanced talks about a potential sale of its European businesses.

Responding to press speculation, the company said a sale will only be considered if it maximises value for shareholders.

"Discussions are on-going and there can be no certainty that any transaction will be agreed," it said.