(Alliance News) - Stocks in London are set to open slightly higher on Tuesday, ahead of the UK unemployment data at 0700 BST.

Investors are also eyeing US inflation data and the interest rate decision from the European Central Bank later this week.

IG says futures indicate the FTSE 100 to open called up 10.5 points, 0.1%, at 7,507.37 on Tuesday. The index of London large-caps closed up 18.68 points, or 0.3% at 7,496.87 on Monday.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.7% and the Nasdaq Composite up 1.1%.

The US tech sector was boosted by a report in The Wall Street Journal that said Federal Reserve officials are likely to leave interest rates unchanged when they meet next week.

The report stated officials are taking a harder look at whether more rate rises are needed as a shift toward a more balanced bias on rates takes hold.

The Fed is worried about raising rates and causing a downturn that turns out to be unnecessary or triggering a new bout of financial turmoil, the WSJ added.

Before the US interest rate decision, the ECB will be deciding its own this Thursday. On Monday, Lloyds said that the Frankfurt-based bank's decision on whether to pause or to hike for a tenth consecutive meeting is "on a knife-edge."

Sterling was quoted at USD1.2511 early Tuesday, lower than USD1.2528 at the London equities close on Monday.

The euro traded at USD1.0738 early Tuesday, lower than USD1.0747 late Monday. Against the yen, the dollar was quoted at JPY146.81, up versus JPY146.42.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.7%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney was up 0.2%.

Gold was quoted at USD1,921.01 an ounce early Tuesday, lower than USD1,923.84 on Monday. Brent oil was trading at USD90.84 a barrel early Tuesday, higher than USD90.42 late Monday.

In Tuesday's UK corporate calendar, there are half-year results from a slew of companies including Dowlais, Fevertree Drinks, Gym Group and Cornerstone FS.

By Sophie Rose, Alliance News reporter

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