London pre-open: Stocks seen higher; jobs data in focus

Stocks in London were expected to open higher on Wednesday following losses in the previous session.

The FTSE 100 was set to open 23 points firmer than Tuesday’s close at 6,688.

On the data calendar, the UK unemployment rate, average weekly earnings and the claimant count are at 0930 BST.

CMC Markets’ Michael Hewson said: “Today’s economic data could well add further grist to the mill with respect to any potential damage that this summer’s Brexit vote has done to the UK economy with the release of the latest unemployment and wages data for July and August.

“So far none of the dire predictions of doom and gloom have come to pass with respect to the UK economy with economists now almost tripping over themselves in their haste to revise upwards their dire predictions in the wake of the recent rebound in UK economic data.”

On the corporate front, FTSE 250 homeware retailer Dunelm reported a rise in full-year profit as revenue grew.

In the 52 weeks to 2 July, pre-tax profit rose to £128.9m from £121.4m in the 52 weeks to 27 June 2015, on revenue of £880.9m, up 7.1% from the year before.

The company recommended a final dividend of 19.1p per share compared to 16p in 2015 and giving a full-year dividend of 25.1p per share, up 16.7% from the prior year. In addition, the company paid a special dividend of 31.5p per share during the year.

Telecommunications company Sky has invested £1m in the Drone Racing League (DRL), which includes a distribution deal to show the league on the Sports Mix channel from October.

Sky Sports will show live events and broadcast content to the UK and Ireland, airing 10 one hour episodes of the league's season, which covers five races.

Construction group Galliford Try hoisted its dividend 21% after it reported a record annual profit thanks to strong growth at its housebuilding and regeneration arms.

Profit before tax of £135.0m in the year to 30 June was up 18% on the same period last year, on revenue 10% higher at £2.67bn.