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

London stocks were set for a muted open on Tuesday as investors digest the latest UK jobs data.

The FTSE 100 was called to open three points lower at 7,774.

Figures released earlier by the Office for National Statistics showed that the unemployment rate rose to 3.9% in the three months to March from 3.8%. Analysts had been expecting it to be unchanged.

Darren Morgan, director of economic statistics at the ONS, said: "Employment and unemployment both rose again in the first three months of 2023, driven in particular by men. This means the number of those neither working nor looking for work continues to fall, although the number of people not working due to long-term sickness rose again, to a new record.

"However, the number of people on employers’ payrolls fell in April for the first time in over two years, though this is an early estimate that could be revised later.

"Despite continued growth in pay, people’s average earnings are still being outstripped by rising prices.

"The number of days lost to strikes rose again in March, with education and health making up four-fifths of the total this month."

In corporate news, telecoms giant Vodafone said it expected to post flat earnings next year after reporting a decline in annual profits in a performance described as "not good enough" by its chief executive, who also announced 11,000 job cuts as part of a radical overhaul of the business.

Adjusted core earnings fell 1.3% to €14.7bn due to higher energy costs, and commercial underperformance in Germany.

CEO Margherita Della Valle said: "Our performance has not been good enough. To consistently deliver, Vodafone must change."

Results were also out from Imperial Brands, Land Securities and Greggs, among others.