(Alliance News) - Stocks in London are set to open fairly flat on Tuesday, as investors look ahead to UK wage inflation data and consider developments in the Middle East.

IG says futures indicate the FTSE 100 to open down 8.0 points, 0.1%, at 7,622.63 on Tuesday. The index of London large-caps closed up 31.03 points, 0.4%, at 7,630.63 on Monday.

"European markets started the week cautiously higher in the absence of an escalation of tensions over the weekend, although you can be sure that investors will be keeping a wary eye on events in the Middle East as Israel weighs its next move," said CMC Markets' Michael Hewson.

Tuesday's economic calendar has a UK unemployment and wage inflation data due shortly, and US retail sales reading at 1330 BST.

Excluding bonuses, UK wage inflation is expected to remain unchanged at 7.8% in the three months to August, compared to the three-month period to July. Including bonuses, it's expected to cool to 8.3% from 8.5%, according to FXStreet-cited market consensus.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 1.0%. In China, the Shanghai Composite was marginally higher, while the Hang Seng index in Hong Kong was up 0.5%. The S&P/ASX 200 in Sydney closed up 0.4%.

Markets in Asia followed a strong US performance, with sentiment getting a boost from news that US President Joe Biden will visit the region and meet with leaders, in a bid to prevent the Israel-Hamas conflict from drawing in other countries.

The US president's trip comes as Israeli Prime Minister Benjamin Netanyahu lines up forces on the Gazan border ahead of an expected ground incursion as Tel Aviv retaliates after deadly October 7 attacks by the militants.

Biden will meet Netanyahu on Wednesday, and will also see Jordanian King Abdullah II, Palestinian leader Mahmud Abbas and Egyptian President Abdel Fattah al-Sisi in hopes of finding a way to de-escalate a crisis that threatens the stability of the region.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, the S&P 500 up 1.1% and the Nasdaq Composite 1.2%.

Sterling was quoted at USD1.2193 early Tuesday, slightly lower than USD1.2194 at the London equities close on Monday. The euro was unchanged at USD1.0546. Against the yen, the dollar was quoted at JPY149.58 versus JPY149.56.

Gold was quoted at USD1,915.04 an ounce early Tuesday, down from USD1,921.22 on Monday. Brent oil was trading at USD89.70 a barrel, lower than USD90.19.

The UK corporate calendar has full-year results from housebuilder Bellway and a trading statement from price comparison website Moneysupermarket.com.

In the US corporate calendar this week, there are third-quarter results from Bank of America, Goldman Sachs and pharmaceutical firm Johnson & Johnson on Tuesday. Results from Morgan Stanley and Tesla follow on Wednesday.

By Elizabeth Winter, Alliance News senior markets reporter

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