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

London stocks were set to rise at the open on Tuesday as investors mulled the latest UK jobs data.

The FTSE 100 was called to open around 30 points higher.

Figures released earlier by the Office for National Statistics showed that the unemployment rate unexpectedly fell in June, to 4.2% from 4.4% in May. It came in below expectations for a reading of 4.5%.

The data also showed that growth in average earnings excluding bonuses fell to 5.4% from 5.8% in May and versus expectations of 4.6%. This marked the slowest pace of growth since May to July 2022.

Including bonuses, average earnings grew 4.5% in June, down from 5.7% and below expectations for a reading of 4.6%.

In corporate news, Synthomer reported growth in revenues, earnings and underlying earnings per share over the first half of 2024.

The specialty chemicals manufacturer also said that it was on track to turn positive on free cash flow for the full year and that it had extended debt maturities.

Revenues for the half were ahead by 3.5% to £1.05bn at constant currencies. Earnings before interest and tax meanwhile rose by 18.7% to £29.0m.

Just Group reported a 44% increase in underlying operating profit to £249m for the first half, driven by strong growth in new business sales and higher recurring in-force profit.

The FTSE 250 company said retirement income sales grew 30% to £2.5bn, with a corresponding 38% increase in new business profits to £222m. It said it maintained a robust capital coverage ratio of 196%, and announced a 20% increase in the interim dividend to 0.7p per share.

Telecom Plus reported continued strong trading performance in an update, saying that its multiservice customer proposition was enabling it to outperform competitors in a normalised market.

The FTSE 250 company, which was holding its annual general meeting, said it was on track to double its customer base to two million over the medium term while also increasing profits and shareholder returns. It also reaffirmed the positive outlook it provided with its annual results in June.