London pre-open: Stocks to rise as investors mull UK jobs data

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

The FTSE 100 was called to open around 37 points higher.

Figures released earlier by the Office for National Statistics showed that wages grew at their slowest pace in nearly two years in the three months to May.

Annual pay excluding bonuses was up 5.7%, down from 6% growth in the previous three-month period. This was in line with economists’ expectations and marked the slowest pace of growth since September 2022.

Including bonuses, total earnings rose 5.7%, down from 5.9%, and also as expected.

The data also showed that the unemployment rate was steady at 4.4% in May, in line with expectations.

Liz McKeown, ONS director of economic statistics, said: "Earnings growth in cash terms, while remaining relatively strong, is showing signs of slowing again.

"However, with inflation falling, in real terms it is at its highest rate in over two and a half years."

In corporate news, Anglo American held annual copper and iron ore production guidance after a second-quarter update.

Copper production fell 6% year on year to 195,700 tonnes, driven by an 8% decrease in Chile's production, while iron ore was flat at 15.6 million tonnes.

Private equity and infrastructure investment group 3i said it had an "encouraging start" to the new financial year, with net asset value (NAV) rising 4% over the first quarter.

NAV per share totalled 2,167p by 30 June, up from 2,085p on 31 March, despite a negative FX translation impact of £113m or 12p per share.

The company’s biggest portfolio company, Action, the Benelux-focused non-food discount retailer, put in a strong performance with net sales and EBITDA up 20% and 23% over the first six months of 2024.

SSE reported a first-quarter operational performance in line with expectations, with renewable output up 60% year-on-year due to improved weather conditions and increased capacity.

The FTSE 100 company said in a trading statement that it was progressing on its £20.5bn ‘NZAP Plus’ investment plan, achieving milestones on several key energy infrastructure projects, including the Viking and Yellow River onshore wind farms and the Dogger Bank A offshore wind farm.

It was also planning to develop a 2GW offshore wind site in the Netherlands, potentially operational by the decade's end.