London pre-open: Stocks to edge higher ahead of data deluge
London stocks were set to edge higher at the open on Friday as investors eyed a deluge of data releases, including the final reading on second-quarter UK GDP.
The FTSE 100 was expected to open six points higher at 7,328.
Investors will be digesting the latest survey from Nationwide, which showed the annual rate of house price growth remained broadly stable in September at 2.0%, compared with 2.1% in August. However, London prices fell for the first time in eight years and the capital was the weakest performing region for the first time since 2005, with prices down 0.6% year-on-year.
On the data front, the final reading of second-quarter gross domestic product, mortgage approvals, consumer credit, net lending and M4 money supply are due at 0930 BST.
CMC Markets analyst Michael Hewson said: “The rebound in sterling has acted as a bit of a drag on the UK benchmark with the pound set to post its best monthly performance against the US dollar since before last year’s Brexit referendum, while also posting its third consecutive quarterly gain, its best run of quarterly gains since 2013/14.
“It’s also set to be a busy end to the month data wise today with the final iteration of UK Q2 GDP, though we’re not expecting too much in the way of fireworks here with GDP expected to be confirmed at 0.3%, and an annualised 1.7%. Business investment is expected to remain unchanged at 0%. In terms of the overall economy index of services for the three months to July is expected to improve to 0.7%, which might augur well for the Q3 numbers next month.
“These numbers are of lesser importance than the more recent data and here there is scope for increased optimism, despite worries that the UK consumer is slightly over borrowed. Recent retail data has shown that while consumers are a little reluctant to spend on big ticket items, there still seems decent activity in on-line retail, groceries and clothing.”
In corporate news, insurer Beazley said early estimates of the net cost of Atlantic hurricanes Harvey, Irma and Maria and earthquakes in Mexico was $175m - $275m (£130m - £205m) and would cut 2017 earnings by about $150m.
Sirius Minerals remains on time and on budget as it develops its massive Woodsmith polyhalite fertiliser mine under the Yorkshire Moors.
Activity levels will now "step up significantly", said managing director Chris Fraser, as the FTSE 250 company begins diaphragm-walling activities as part of the shaft-sinking process.
QinetiQ issued a short trading update before entering its closed period for the half year to 30 September on Friday, confirming trading was in line with expectations and the outlook for overall group performance this financial year was unchanged.
The FTSE 250 firm said it continued to make strategic progress after an £8m order from the Ministry of Defence and a £25m order from Boeing, as well as an AUD 8m order from the Australian Department of Defence and a "significant order" from the US Navy.
Aviva said it has agreed to sell its stake in Italian joint venture Avipop Assicurazioni to Banco BPM for €265m (£233m) in cash.