London pre-open: Stocks seen muted ahead of earnings, unemployment data

London stocks were set for a muted open on Wednesday as investors eyed UK employment and earnings figures.

The FTSE 100 was expected to open three points higher at 7,268.

The claimant count change, the unemployment rate and average earnings are due at 0930 BST. Bank of England Governor Mark Carney is due to give a speech in London around the same time.

London Capital Group analyst Ipek Ozkardeskaya said: "The labour data should reveal the progress in wages growth. A solid read could revive the worries on rising inflation and reinforce the GBP appreciation.

"Prior to the labour data, the Bank of England Governor Mark Carney is due to speak in London. He is expected to maintain his supportive stance, yet will unlikely reveal anything new regarding the UK’s monetary policy."

Investors will also be digesting data out of China from the National Bureau of Statistics, which showed the consumer price index rose 0.9% in March from 0.8% the month before, below economists' expectations for a 1% increase.

On a month-on-month basis, the consumer price index was down 0.3% in March from February, when it fell 0.2%.

Meanwhile, the producer price index was up 7.6% in March compared to a 7.8% rise on the year in February.

In corporate news, Tesco reported a 29.9% rise in group full year operating profits to £1.28bn on the back of a 4.3% increase in group sales to £49.9bn.

The figures exclude an exceptional charge of £235m, including a deferred prosecution agreement between Tesco and the UK Serious Fraud Office over historic accounting practices and an agreement with the UK Financial Conduct Authority of a finding of market abuse in August 2014.

The company said it intended to resume dividend payments in 2017/18.

FTSE 250 engineer Keller Group has bought US infrastructure monitoring company GEO-Instruments, for an undisclosed sum.

Rhode Island-based GEO-Instruments supplies and manufacturers monitoring systems for buildings, excavations, bridges, railways, roads, tunnels, dams, embankments, and slopes.

Retailer WH Smiths grew profits 4% in the first half of the year as sales from its travel arm more than offset continued decline of the high street business.

Group revenues rose 2% to £643m but were flat on a like-for-like basis as travel LFL sales rose 5% and high street LFL sales fell 3%.