London pre-open: Stocks to fall as investors mull jobs data, eye PMIs

London stocks were set to fall on Tuesday as investors digested the latest UK jobs data and looked ahead to services and manufacturing PMIs.

The FTSE 100 was called to open 12 points lower at 7,362.

Figures released earlier by the Office for National Statistics showed that the unemployment rate was 4.2% in the three months to August, up from 4.0% in the three months to July. This was the ONS’ first month using new methodology to calculate the rate.

The data also showed that employment declined by 82,000 following a 133,000 fall in the previous quarter.

ONS director of economic statistics Darren Morgan said: "Today we have produced a new metric, produced by adjusting our headline survey estimates using robust administrative data sources that we receive from other government departments. This maintains the accuracy of our key statistics.

"This new metric shows that in the latest period the employment rate was down a little, with small rises in the rates for both unemployment and those neither working nor looking for work."

Still to come, the S&P Global/CIPS services and manufacturing PMIs for October are due out at 0930 BST.

In corporate news, Bunzl said in a trading update that its adjusted operating profit was in line with expectations as it maintained its 2023 profit outlook.

It said group revenue was down 4.8% in the third quarter after a decline in Covid-19-related product sales, reduced inflation benefits, and post-pandemic normalisation. Despite the revenue fall, its operating margin remained strong and was expected to reach record levels in 2023.

Multi-metal mining giant Anglo American cut copper production guidance for the full year, but said it remains on track to hit all other output targets.

Copper production guidance for 2023 was revised to 830,000-870,000 tonnes, from earlier forecasts of 840,000-930,000 tonnes, as a result of poor ore characteristics and an electrical substation fire at its Los Bronces project in Chile, as well as the impact of a geotechnical fault line on El Soldado's production.

Investors were also mulling a third-quarter update from Barclays and final results from Softcat.