London pre-open: Stocks to push higher after Wall St bounces back
London stocks were set for a positive open on Wednesday after stocks on Wall Street managed to shake off losses and end higher.
The FTSE 100 was called to open up 44 points at 7,185.
CMC Markets analyst Michael Hewson said: " Yesterday’s recovery in US markets is likely to result in a decent rebound for stock markets in Europe this morning after yesterday’s weak session, however it remains too early for the moment to suggest that this might be the end to this particular bout of weakness, given that we still remain below the levels of where we closed Monday’s trading session.
"While the global economy continues to point to a positive economic outlook, the volatility around the moves of the past few days is likely to introduce an element of uncertainty and caution over the next few days, at least until the price action starts to settle down and become a bit more stable.
"US 10 year yields edged back up again towards 2.8%, after initially slipping back sharply to 2.65% as the early week rout prompted some safe haven flows into US treasuries."
On the UK data front, Halifax house prices are at 0830 GMT.
In corporate news, international sales, marketing and support services group DCC issued its interim management statement for its third quarter, reporting that operating profit for the period to 31 December was in line with expectations and ahead of the prior year.
The company said operating profit in DCC LPG was in line with expectations and the prior year, despite the headwind of an increasing cost of product, while DCC Retail & Oil recorded good growth in operating profit, DCC Healthcare posted strong growth in operating profit, and operating profit at DCC Technology said to be ahead of the prior year.
Imperial Brands snuffed out hopes of a strong first-half result, with revenues hit by new tobacco laws in the UK and an adverse sales mix, but said it was "significantly stepping up" its activities in vaping and e-cigarettes.
Underlying first half operating profit will flat compared to last year but will be hit by a currency headwind from the recovery in sterling and a £160m write-off from the collapse of wholesaler Palmer & Harvey.
Smurfit Kappa's earnings rose 10% in the fourth quarter as strong growth for the paper packaging company in Europe offset reduced earnings in the Americas.
Mining giant Rio Tinto announced a record full-year dividend as it posted a jump in profit and announced an additional $1bn share buyback.
In the year to the end of December 2017, underlying earnings rose 69% to $8.6bn, while basic earnings per share increased 91% to 490.4 cents and the dividend was lifted 71% to 290 cents.