London stocks were set to fall at the open on Tuesday following a downbeat close on Wall Street as disappointing data releases added to expectations of a US rate cut later this month.
The FTSE 100 was called to open down around 15 points.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Yesterday's US data highlighted economic weakness beyond AI hype: factory activity contracted for the ninth straight month, orders fell at the steepest pace in four months and employment shrank. Judging by the data and Fed funds futures, a rate cut next week seems highly likely; otherwise, the market reaction would be severe.

"The hope is that the slowing US economy also slows spending and tames inflation. Black Friday sales hit a record, and Cyber Monday was robust, but part of that was due to inflation - Americans bought 1% fewer goods but paid 7% more, according to Salesforce. Tariffs will likely continue adding pressure. Companies have weathered costs by liquidating pre-tariff stockpiles, while others absorbed temporary hits. But ultimately, someone pays. If demand weakens, tariff-led price increases could be neutralised.

"So it comes down to this: will tariff-driven price pressure, combined with a softening jobs market, eventually force consumers to pull back? And could any slowdown offset the inflationary impact of tariffs? US inflation cannot rise materially above 3% without affecting Fed cut expectations. We are in a delicate place for policy: a rate cut next week may not bring relief if inflation data doesn't improve."

On home shores, figures from Nationwide showed that house prices continued to rise in November, although the rate of growth slowed.

House prices grew by 1.8% year-on-year, down on October's 2.4% spike but ahead of expectations, for a 1.4% uplift.

Month-on-month, seasonally-adjusted growth was 0.3%, also ahead of consensus, for 0%.

Investors were also mulling the latest shop price monitor from the British Retail Consortium and NIQ, which showed that shop prices fell in November as retailers started to launch their Black Friday deals and promotions.

Inflation decreased to 0.6% last month year-on-year, from 1% in October.

Non-food inflation fell to -0.6%, but food inflation - which has soared this year - was also lower. It came in at 3%, down on October's 3.7% and below the three-month average, also for 3.7%.

Fresh food inflation was 3.6%, down from October's 4.3%, while ambient food inflation softened to 2.4% from 2.9%.

Helen Dickinson, BRC chief executive, said: "Black Friday deals began earlier than normal, as competition between retailers hit fever pitch.

"While food price inflation remains elevated, widespread promotions mean price rises eased over the month, especially in dairy, fruit, breads and cereals.

"With Budget uncertainty behind us, retailers are hoping that consumer confidence rebounds in this crucial trading period."

However, Dickinson acknowledged that sector headwinds remained, including rising employment costs, "which are likely to filter through to prices" in the new year.

"This could shake already weak consumer and present further challenges for consumers in the year ahead," she said.

Mike Watkins, head of retailer and business insight at NIQ, said: "The UK retail market is very competitive, so retailers will need to keep any price increases as low as possible in the run up to Christmas, to entice shopper to spend."

In corporate news, polymers group Victrex said it has launched a "profit improvement plan" targeting £10m of savings, after underlying earnings dropped 21% over the 12 months to 30 September.

Underlying pre-tax profit totalled £46.4m, down from £59.1m the year before, due to currency movements, the cost of setting up a new plant in China and an adverse sales mix, while group revenues rose just 1% to £292.7m.

Property investment and development firm Segro said it has inked a pre-let development agreement with a major international retailer for an 86,000 square metre distribution centre in Germany's Rhine-Ruhr region.

Segro said construction was expected to start on site in Spring 2026 and was due to be completed in mid-2027.

Budget airline Wizz Air said it carried 5.25 million passengers in November, an 8.6% increase year-on-year, with seat capacity rising 9.5% to 5.79 million.

Load factor - the number of available seats sold - remained robust at 90.7%, indicating sustained demand and efficient capacity utilisation amid network expansion.

Wizz added that it took delivery of its 250th aircraft on 28 November and still holds more than 260 orders for Airbus A321neo planes.