(Alliance News) - Stocks in London are set to open lower on Tuesday, in the absence of direction from Wall Street given the public holiday in the US on Monday.

IG says futures indicate the FTSE 100 to open down 21.5 points, 0.3%, at 7,573.41 on Tuesday. The index of London large-caps closed down 30.02 points, 0.4%, at 7,594.91 on Monday.

The economic calendar for Tuesday has the UK unemployment figures at 0700 GMT.

"As we look towards today's wages data, the next few days has the potential to shift the dial on the timing of when we might see the first rate cut from the Bank of England," said Michael Hewson, chief market analyst at CMC Markets UK.

"Today's wages data for the 3-months to November is the first key test and while it is widely expected that the pace of wage growth will slow from the 7.3% in October, to 6.6% in November it is still likely to be perceived as uncomfortably high by historical standards."

On Wednesday, investors will then have UK consumer and producer price inflation readings to digest.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.8%, following the latest set of producer price data.

Producer prices in Japan edged up at the end of last year on a monthly basis, official data showed.

According to the Statistics Bureau of Japan, the producer price index rose 0.3% in December from November, matching the revised reading for the prior month. According to FXStreet-cited consensus, the market had been expecting a flat reading for December.

The monthly change was almost entirely due to rising prices of petroleum and coal products, which rose 3.5% from November.

On an annual basis, prices were flat in December, having risen 0.3% on-year in November. Market consensus had been anticipating a 0.3% fall for December.

In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 2.2%. The S&P/ASX 200 in Sydney closed down 1.1%.

Sterling was quoted at USD1.2679 early Tuesday, lower than USD1.2734 at the London equities close on Monday. The euro traded at USD1.0886 early Tuesday, lower than USD1.0950 late Monday. Against the yen, the dollar was quoted at JPY146.16, up versus JPY145.77.

In the US on Friday, Wall Street ended mixed. The Dow Jones Industrial Average closed own 0.3%, the S&P 500 up 0.1% and the Nasdaq Composite slightly higher. Markets were closed on Monday for Martin Luther King Jr Day. They will reopen on Tuesday.

Gold was quoted at USD2,049.33 an ounce early Tuesday, lower than USD2,053.53 on Monday. Brent oil was trading at USD78.06 a barrel early Tuesday, down slightly from USD78.09 late Monday.

In Tuesday's UK corporate calendar, trading statements are due from Experian, Ocado, Rio Tinto and Wise Group.

After the UK unemployment data, Bank of England Governor Andrew Bailey will speak at 1500 GMT.

By Sophie Rose, Alliance News senior reporter

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