(Alliance News) - Stocks in London are set to open lower on Tuesday, returning some of Monday's gain, with focus on US data later this week.
Eyes will also be on a UK unemployment reading at 0700 BST, which could put the Bank of England in the spotlight.
Pepperstone analyst Michael Brown commented: "This morning's soon-to-be released UK labour market figures are the highlight of the relatively barren schedule, with unemployment set to have ticked lower to 4.1% in the three months to July, while the pace of earnings growth is set to cool 0.3 percentage points to 5.1% year-on-year.
"However, given concerns over the reliability and accuracy of the data, labour market stats have played a relatively minimal role in the BoE's decision making of late, the figures shouldn't move the needle too significantly for either the GBP, or the policy outlook at large. The MPC are almost certain to hold bank rate steady at the September meeting, next Thursday, before another 25 basis point cut in November."
IG says futures indicate the FTSE 100 to open 37.9 points lower, 0.5%, at 8,232.94 on Tuesday. The index of London large-caps rose 89.37 points, or 1.1%, at 8,270.84 on Monday.
The pound was quoted at USD1.3076 early Tuesday, unmoved from USD1.3075 at the time of the London equities close on Monday. The euro traded at USD1.1041, barely budging from USD1.1039. Against the yen, the dollar rose to JPY143.09 from JPY142.93.
In New York on Monday, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite each added 1.2%.
Equities in Asia were largely higher. The Nikkei 225 in Tokyo was up 0.5% in late trade. In China, the Shanghai Composite was down 0.4%, but the Hang Seng in Hong Kong was up 0.3%. The S&P/ASX 200 in Sydney was 0.4% higher.
ActivTrades analyst Anderson Alves said eyes remain state-side. Wednesday has a US inflation reading, with a Federal Reserve decision following a week later.
"Market participants remain divided over whether the Fed will cut rates by 25 or 50 basis points," Alves added.
"Looking ahead, the US presidential debate will be a key event for market participants, with significant attention on issues such as tariffs and foreign policy. With the race currently tight, increased short-term volatility in assets like the USD and US yields is anticipated, though a clear directional move may not emerge immediately."
China's exports jumped in August but imports fell well short of expectations, data showed Tuesday, as the country's leaders struggle to boost consumption in the world's second-largest economy.
Overseas shipments expanded 8.7% on-year last month, according to China's General Administration of Customs, picking up speed from 7.0 growth in July.
The reading was also much better than the 6.6% forecast in a Bloomberg survey of analysts.
The figures will provide a little encouragement to leaders, who have this year sought to counteract an array of headwinds that have dragged on growth, which has led to sluggish spending, with consumers reluctant to make large purchases.
However, imports in August grew just 0.5%, a massive drop from the 7.2% enjoyed the month before and much lower than the 2.5% estimated in the Bloomberg survey.
Gold rose to USD2,503.51 an ounce early Tuesday, from USD2,497.50 late Monday. A barrel of Brent oil climbed to USD71.65 from USD71.25.
Tuesday's economic calendar has the UK unemployment and wages data as well as German consumer price inflation figures at 0700 BST.
In the local corporate calendar, compound semiconductor wafer products provider IQE releases half-year results.
By Eric Cunha, Alliance News news editor
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