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

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

Investors will be mulling comments from US vice president JD Vance, who said in an interview on Monday with UnHerd that there is a "good chance" the UK and the US can secure a trade deal.

"We’re certainly working very hard with Keir Starmer’s government," he said.

On the macro front, figures from the Office for National Statistics showed that the unemployment rate was steady at 4.4% in the three months to February.

The data also showed that growth in annual average weekly earnings excluding bonuses was 5.9%, while growth in average earnings including bonuses was 5.6%.

Liz McKeown, economics director at the ONS, said: "Regular pay growth remains strong having increased slightly in the latest period.

"Growth accelerated in the previous pay rises fully fed through to our headline figures, while pay in the private sector was little changed."

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "This a snapshot taken in the china shop before the tariff bull was let loose. The jobs market was in decent shape, with steady wage growth and a rising employment rate. However, there were some early signs of shakiness as vacancies fell for a 33rd consecutive quarter, and finally dropped below their pre-pandemic levels.

"On the plus side, we’re still seeing wages rise, and they’re still well ahead of inflation, so workers will be feeling slightly better off with each passing month. The most recent HL Savings & Resilience Barometer shows the average household now has £196 left at the end of the month, which is why people are able to put aside 5.5% of their income for the future.

"There were some signs of resilience in the jobs market. The inactivity rate was down over the quarter, the unemployment rate steady and the employment rate has risen. However, things looked less positive when it came to vacancies. The looming hike in employers’ taxes in April is very likely to have persuaded employers to hold back on hiring.

"This is the simplest lever for businesses to pull when they want to slow things down. It’s far cheaper and damaging than letting people go, so may be a sign of things to come. Business investment figures don’t inspire a great deal of hope, down 1.9% at the end of last year."

In corporate news, discount retailer B&M said that adjusted operating profits should be above the mid-point of its guidance range for the year ended 29 March on the back of productivity gains and a pick-up in underlying sales growth in the fourth quarter.

Guidance for adjusted EBITDA was cut in February to £605m-625m, down from an earlier forecast of £620m to £650m.

FirstGroup said in an update that it expects its adjusted operating profit and earnings per share for the financial year just ended to exceed prior guidance, driven by stronger-than-expected performance in First Rail and in-line results from First Bus.

The FTSE 250 passenger transport operator said First Bus saw revenue growth through yield improvements and acquisitions despite a slight decline in passenger volumes, while the £90m acquisition of RATP London was progressing well with anticipated long-term revenue growth.

First Rail meanwhile benefited from higher variable fees from government contracts and continued strength in open access operations, with the group ending the year with lower-than-expected net debt despite completing a £50m share buyback.