London pre-open: Stocks seen higher ahead of inflation data
London stocks were set for a positive open on Tuesday, shrugging off another downbeat session in the US which saw technology shares hit again, as investors eyed the release of key inflation data, with politics still firmly in focus.
The FTSE 100 was expected to open 36 points higher at 7,548.
The retail price index, producer price index and consumer price index are all at 0930 BST.
CMC Markets analyst Michael Hewson said: "Having started this year at 1.8% CPI inflation hit 2.7% in April and looks set to stay at this level in the latest May numbers which are due out later this morning. Core prices have also jumped sharply since the beginning of the year from 1.6% to 2.4% in April, though we are expected to see a slight moderation in the May numbers to 2.3%.
"There could be a silver lining given recent falls in oil prices, which might suggest that we’ve seen a short term plateau for prices which could see prices start to fall back. Input prices in the last few months have shown some signs of falling back, and in both the US and the EU inflation has shown some signs of falling back which would be good news for hard pressed consumers, when wages are currently lagging behind."
Tuesday marks the first day of the Federal Reserve's two-day interest rate setting meeting, while the Bank of England is due to announce its policy on Thursday.
In corporate news, Acacia Mining has confirmed that it is continuing to operate all three of its mines in Tanzania, after the government accused it of operating illegally and avoiding tax by under-declaring its gold exports. Acacia pointed out that its Tanzanian mines are all owned and operated by companies that are legally incorporated and registered in Tanzania, which each hold special mining licences, possibly in response to the government's accusation that the company was not properly licensed in the country.
Investors in visitor attraction operator Merlin Entertainments were set to muster for the company’s annual general meeting on Tuesday, with the board confirming group trading for the year to date had been “broadly” in line with expectations, reflecting the outlook and commentary it provided on 2 March.
The FTSE 100 firm said it had continued to make “good progress” towards its 2020 ‘New Business Development’ milestones, with around 250 accommodation rooms opened, along with three ‘midway’ attractions and LEGOLAND Japan, which was ahead of schedule.
Ashtead Group proposed hiking its dividend by almost a quarter after beating the City's profit forecast and foreseeing another good year ahead. Rental revenue rose 13% last year to £2.9bn and pre-tax profit leapt 23% to £793m, beating consensus forecast by £1m.