(Sharecast News) - London stocks were set to fall at the open on Tuesday as investors turn their attention to the US mid-term elections.
The FTSE 100 was called to open 29 points lower at 7,271.
CMC Markets analyst Michael Hewson said: "Despite the strong US finish yesterday, markets here in Europe look set to open in the same fashion they ended yesterday, mixed.
"With the polls in the US pointing to the Republicans winning at least one of the US legislatures, which would be a catalyst for the political gridlock over the next two years and thus stymieing the ability of politicians to pass any legislation that could impact negatively on business."
On home shores, industry research showed that retail sales growth slowed in October as the mounting cost-of-living crisis curbed spending.
According to the latest BRC-KPMG Retail Sales Monitor, total sales rose by 1.6% in October, compared to a rise of 2.2% in September. The figure was below both the three-month average of 1.7% and 12-month average of 2.7%.
On a like-for-like basis, sales rose 1.2% year-on-year, compared to a 1.8% rise in September. That was largely in line with the three-month average of growth of 1.2%, and ahead of the 12-month average of 1.0%.
Helen Dickinson, chief executive of the British Retail Consortium, said: "As the cost of living for consumers continued to rise, retail sales slowed in October. With November's Black Friday sales just around the corner, people look to be delaying spending, particularly on bigger purchases.
"Clothing and footwear, which saw stronger sales this year, declined as the mild weather meant customers held back on buying winter outfits."
The last three months of the year is crucial for many retailers, as shoppers splash out on festive treats.
But Dickinson warned: "Christmas will come later than last year for many, and may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise."
Paul Martin, UK head of retail at KPMG, said: "Despite the price of goods being higher than 2021, retail sales during October grew by just over 1% in value year-on-year. This increase is being driven by inflationary pressures and does not tell the true picture of sales volumes dropping as consumers purchase fewer products per shop.
"Sales across every category, both online and in store, fell year-on-year as consumers adjust to shrinking household incomes.
"Retailers will be hedging their bets on a successful World Cup and Black Friday to boost sales during the crucial golden quarter. Given the economic headwinds, it is unlikely that the usual festive boost will be enough to counteract the ongoing issues that retailers face with rising costs, squeezed margins and falling demand."
In corporate news, housebuilder Persimmon warned of fewer completions and a hit to margins from falling house prices amid the cost-of-living crisis.
The company said cancellation rates had risen to 28% from 21% in the last six weeks after the government's disastrous mini budget - which saw thousands of mortgage offers pulled from the market - and rising interest rates.
Sales and marketing firm DCC posted improved interim revenue and operating profits thanks to "strong" growth in its seasonally less significant first half.
DCC said interim revenues had surged 44.1% to £10.83bn, while adjusted operating profits rose 11.9% to £221.2m and adjusted earnings per share were 6.7% higher at 146.4p.