London stocks were set to gain at the open on Tuesday as the latest UK labour market data lifted the chances of a rate cut next month.
The FTSE 100 was called to open around 60 points higher.
Figures released earlier by the Office for National Statistics revealed further signs of weakening in the labour market after the unemployment rate ticked higher.
Employment softened by 0.2 percentage points in the three months to September, while the unemployment rate rose 0.3pp to 5.0%, marginally ahead of forecasts for 4.9%
The unemployment rate now stands at a post-pandemic high.
Average earnings, meanwhile, rose by 4.6%, or by 4.8% once bonuses were included.
Driving the growth was the public sector, where earnings rose by 6,6%. In the private sector, earnings increased by 4.2%.
Liz McKeown, director of economic statistics at the ONS, said: "Taken together, these figures point to a weakening labour market.
"The number of people on payroll is now falling, with revised tax data now showing falls in most of the 12 months.
"Meanwhile, the unemployment rate is up to a post-pandemic high. The number of job vacancies, however, remains broadly unchanged."
Jake Finney, senior economist at PwC UK, said: "With most indicators now moving in the right direction, a December rate cut is no longer off the table. Pay growth is edging down, adding to signs that domestic price pressures are easing after the recent fall in services inflation.
"However, recent comments from the Bank of England suggest policymakers remain cautious, suggesting a move early in the new year could still be the most likely outcome."
In corporate news, Vodafone said it expected annual profit and cash flow to be at the upper end of expectations after reporting a jump in adjusted earnings and also unveiled a new progressive dividend policy with a 2.5% increase for the full year.
The telecoms operator said adjusted earnings before interest, taxes, depreciation, amortisation, and leases rose 5.9% to €5.7bn. Vodafone expects a full-year profit of €11.3-11.6bn and adjusted free cash flow of €2.4-2.6bn.
Elsewhere, Irish energy sales, marketing and distribution group DCC confirmed full-year guidance for "good operating profit growth" after a swing to profitability in the second quarter.
Adjusted operating profit over the half year to 30 September fell 5.4% to £206.7m due to strong prior-year comparatives, the impact of mild weather earlier in the year and the disposal of its Hong Kong and Macau business last year.
However, trading improved in the second quarter leading to a "modest" increase in the bottom line.