London pre-open: Stocks seen lower after Asian falls; UK jobs data in focus

(Sharecast News) - London stocks were set to slump at the open on Tuesday following heavy falls in Asia, as investors mulled the latest UK jobs data and eyed key US bank earnings.

The FTSE 100 was called to open down around 45 points.

Figures out earlier from the Office for National Statistics showed that unemployment ticked higher in August, by slightly more than expected.

The unemployment rate was 4.8% in June to August. That was up on both July's rate of 4.7%, and ahead of consensus, also for 4.7%.

In the three months to September, vacancies fell by 9,000 - or 1.3% - to 717,000.

Average employee earnings (excluding bonuses), meanwhile, rose by 4.7%, compared to growth of 4.8% a month previously. Including bonuses, wages rose by 5%, up from July's 4.8% increase.

Looking ahead to the rest of the day, attention will turn to earnings across the Pond, with JP Morgan, Goldman Sachs, Citi, Wells Fargo and Blackrock all slated to report.

Kathleen Brooks, research director at XTB, said: "The investor focus on these earnings reports could be even more intense than usual since they could fill some of the information vacuum that has been caused by the delayed release of key economic data releases due to the US government shutdown."

She continued: "While the backdrop for parts of the financial sector is challenging, particularly for private credit markets, Wall Street's biggest and most established lenders are poised for another strong quarter. Analysts expect Goldman, JPM, Citi and Wells Fargo to report revenues of just bovver $101 bn for last quarter. The bulk of earnings are expected to come from resilient trading revenues, as stocks and precious metals made multiple record highs, and a strong rebound in dealmaking activity.

"There has been more than $1 trillion of deal making activity so this year. Private Equity deal making surged in September, which included the lucrative $55bn transaction of Electronic Arts. This upswing in transactions is all juicy revenues for the world's biggest investment banks."

In UK corporate news, housebuilder Bellway reported a jump in full-year profit and revenue as completions grew despite "ongoing challenges" for the industry.

In the year to 31 July, underlying pre-tax profit rose 28% to �289.1m with revenue up 17% to �2.78bn and completions 14.3% higher at 8,749.

Bellway said customer demand was supported by generally good availability of mortgage finance and relative stability in mortgage interest rates during the year.

Pharma giant GSK said it has received regulatory approval in China to expand the use of its Shingrix shingles vaccine.

Shingrix, which is currently available in China to adults over 50, has now been approved in adults 18 and over who are at increased risk of shingles due to immunodeficiency or immunosuppression caused by a known disease or therapy.