(Alliance News) - London's FTSE 100 has been called to open lower on Tuesday, after tech shares in New York tumbled overnight, with US interest rate worries and global tensions hurting investor enthusiasm.

Focus early on Tuesday will be on a UK unemployment reading at 0700 BST. According to FXStreet cited consensus, the jobless rate is expected to have picked up to 4.0% in the three months to February, from 3.9% in the three months to January.

IG says futures indicate the FTSE 100 to open 76.6 points lower, 1.0%, at 7,888.93 on Tuesday. The index of London large-caps closed down 30.05 points, 0.4%, at 7,965.53 on Monday.

In New York on Monday, the Dow Jones Industrial Average closed down 0.7%, the S&P 500 shed 1.2% and the Nasdaq Composite plunged 1.8%.

"The markets were on edge following a weekend filled with alarming news from the Middle East," SPI Asset Management analyst Stephen Innes commented.

"However, on Monday, equities faced more than just the spectre of potential global conflict. Adding to the unease was another strong indication of the US economy's resilience. A crucial measure of retail sales surged, quadrupling estimates and hinting at further upside for the forthcoming advance read on Q1 GDP later this month. This development further diminishes the case for rate cuts in 2024."

Data from the US Census Bureau showed retail sales ticked up more than expected in March.

Advance estimates of US retail and food sales rose 0.7% in March from February and were 4.0% higher on-year.

Against the dollar, sterling fell to USD1.2436 early Tuesday in London, from USD1.2458 on Monday. The euro faded to USD1.0617 from USD1.0636.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 1.8% in late trade. In China, the Shanghai Composite was 0.6% lower, while the Hang Seng index in Hong Kong fell 1.6%. The S&P/ASX 200 traded down 1.7% shortly before the closing bell in Sydney.

China's economic growth in the first quarter beat market expectations, official data showed on Tuesday.

According to the National Bureau of Statistics, China's gross domestic product expanded by 5.3% annually in the first quarter of 2024, beating FXStreet-cited market consensus of 5.0%.

In the fourth quarter of 2023, China's economy grew 5.2%. Earlier this year, Chinese officials set an annual target of "around 5%" GDP growth.

Against the yen, the dollar traded at JPY154.34 early Tuesday London time, flat from JPY154.32 at the European equities close on Monday. The yen traded as low as JPY154.44 to the dollar earlier on Tuesday, its weakest level since 1900.

A barrel of Brent oil fetched USD90.73 early Tuesday, up from USD89.20 at the time of the London equities close on Monday. Gold rose to USD2,385.70 an ounce, rising from USD2,348.01.

Tuesday's UK corporate calendar has trading statements from copper producer Antofagasta and Ladbrokes owner Entain.

By Eric Cunha, Alliance News news editor

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