(Sharecast News) - London stocks were set to fall at the open on Tuesday as investors mulled the latest UK jobs data.
The FTSE 100 was called to open 10 points lower at 7,375.
CMC Markets analyst Michael Hewson said: "Despite a rebound in yields as well as the US dollar, European markets managed to start the week on a positive note, diverging from what would eventually be a negative US session, which rolled over in the last two hours of trading with the Nasdaq 100 and S&P 500 leading the way lower.
"We heard from several Fed speakers yesterday, the most notable being Fed vice chair Lael Brainard who said it probably be appropriate to slow the pace of rate hikes, although there was still much to be done, echoing previous Fed speakers at the end of last week.
"The S&P 500 at one point managed to put in a fresh two month high, however the lack of momentum over 4,000 soon petered out, while the US dollar retreated from its highs of the day, which looks set to see markets in Europe open mixed this morning."
On home shores, figures released earlier by the Office for National Statistics showed the unemployment rate ticked up to 3.6% in the three months to September from 3.5% in August. Analysts had been expecting the rate to remain unchanged.
Meanwhile, regular pay adjusted for inflation fell 2.7% in the year to August.
Darren Morgan, director of economic statistics at the ONS, said: "The proportion of people neither working nor looking for work has risen again.
"Since the onset of the pandemic, this shift has largely been caused by older workers leaving the labour market altogether, but in the most recent quarter the main contribution has actually come from younger groups.
"August and September saw well over half a million working days lost to strikes, the highest two-month total in more than a decade, with the vast majority coming from the transport and communications sectors.
"With real earnings continuing to fall, it's not surprising that employers we survey are telling us most disputes are about pay."
Looking ahead to the rest of the day, investors will be eyeing the US producer price index for October at 1330 GMT.
In corporate news, BAE Systems held guidance as it said a weaker pound would provide a tailwind for reported annual earnings and sales.
The company said it also expected to benefit from increased defence spending by countries in which it operates due to rising tensions brought on by Russia's unprovoked invasion of Ukraine last February.