London pre-open: FTSE to edge up after jobs data, as ceasefire deadline looms

(Sharecast News) - London stocks were set to edge up at the open on Tuesday as the deadline for the two-week ceasefire between the US and Iran looms, and as investors mulled the latest UK jobs data.

The FTSE 100 was called to open around 15 points higher.

Kathleen Brooks, research director at XTB, said: "The market mood on Tuesday is upbeat considering the US and Iran have not agreed an extension of the current ceasefire that expires tomorrow. The oil price is lower, and Asian stocks rallied, with South Korea's Kospi reaching a fresh record high.

"Brent crude is down more than 1% and is back below $95 per barrel. The fall in the oil price continues to be central to the market mood, and it is boosting equity market futures in the US and the UK."

On home shores, data from the Office for National Statistics showed that unemployment unexpectedly fell in February, while wage growth continued to slow.

The unemployment rate in the three months to February was 4.9%, down on January's 5.2% and versus consensus expectations of no change.

Average earnings excluding bonuses grew by 3.6% over the same period. That was down on the previous month's 3.8% uplift although it was higher than forecasts for a 3.5% increase.

ONS director of economic statistics, Liz McKeown, said: "The number of workers on payroll remained broadly flat in recent periods, reflecting ongoing weak hiring.

"Vacancies fell to their lowest level in almost five years, but with unemployment also falling the number of vacancies per unemployed person remains broadly unchanged.

"Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies.

"Regular wage growth has slowed further with growth at its lowest rate in over five years."

In corporate news, Associated British Foods said it planned to demerge its Primark retail business from its food operations after a review.

The Weston family's Wittington Investments, ABF's largest shareholder, said it would retain majority ownership of both entities.

The news came as ABF posted a 19% fall in adjusted pre-tax profits to �663m for the six months to 28 February and held its outlook for the full year.

Data and technology firm Experian said that Adam Crozier would join the board as a non-executive director and chair designate on 12 May.

Crozier, who currently serves as chair of BT and Kantar, will succeed Mike Rogers as chairman following the conclusion of Experian's annual general meeting on 22 July.