London pre-open: Stocks seen up as investors mull China GDP, UK jobs data

(Sharecast News) - London stocks were set to rise at the open on Tuesday following a positive US session and better-than-expected Chinese GDP figures, as investors digest the latest UK jobs data. The FTSE 100 was called to open around 20 points higher.

Data out earlier showed that headline GDP growth in China rose to 4.5% in the first quarter from 2.9% in the final quarter of last year, beating expectations for 4% growth.

Capital Economics said: "This partly reflects a weak base for comparison - virus disruptions were spreading at the end of Q1 last year. But growth also jumped in seasonally-adjusted q/q terms, from an upwardly revised 0.6% in Q4 to 2.2% in Q1. This leaves output 6.8% higher than during the recent trough in Q2 2022. As such, headline GDP growth is on course to exceed 7.0% this quarter."

In the UK, meanwhile, data released by the Office for National Statistics showed the unemployment rate ticked up 0.1 percentage points in the three months to February to 3.8%. This was driven by people unemployed for up to six months, the ONS said. Analysts had been expecting the rate to be steady.

The employment rate came in at 75.8%, up 0.2 percentage points on the previous three-month period. The ONS put this down to part-time employees and self-employed workers.

The data also showed that the number of vacancies fell by 47,000 on the quarter to 1,105,000. This was the ninth consecutive decline and reflects "uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment," the ONS said.

In corporate news, low-cost airline easyJet said it expected to beat market expectations for annual profits due to high demand and strong summer bookings after slashing losses in the first six months of the current year.

The company said its headline pre-tax loss was now expected to be £405 - £425m despite challenges from higher fuel prices and inflation. It forecast summer bookings to return to pre-Covid pandemic levels after ramping up crew numbers.

"Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, easyJet anticipates exceeding current market profit expectations of £260m for full-year 2023," easyJet said.

Elsewhere, Entain hailed a "strong" start to 2023, with first-quarter net gaming revenue up 15%.

Chief executive Jette Nygaard-Andersen said: "We are delivering both financially and strategically, with a record number of active customers enjoying our products, and we are executing on growth opportunities to further diversify and expand across regulated markets.

"In the US, BetMGM continues to grow in line with expectations and enjoyed a successful quarter which included the Super Bowl and March Madness."