London pre-open: Stocks seen higher as investors eye inflation data
London stocks were set for a firmer open on Wednesday, taking their cue from a positive session in the US as investors eyed the release of UK inflation data for July.
The FTSE 100 was called to open 22 points higher at 7,633.
London Capital Group analyst Jasper Lawler said: "Risk on sentiment returned and traders were once again in the mood for buying overnight. As the lira moved higher, Wall Street rebounded snapping a four-day losing streak on the Dow.
"Whilst the markets have regained their cool towards Turkey for the time being, it is highly unlikely that the whole crises can now be swept under the carpet. These confidence issues are rarely a one or two-day event, never to raise their head again. Not only is it unlikely that hostilities between Turkey and the US will simmer down quickly, but fundamentals are stacked against emerging markets right now as they struggle in a rising US interest rates climate."
On the data front, PPI, CPI and RPI are all at 0930 BST. The CPI is expected to print at 2.5% year on year in July, up slightly from June’s 2.4%, while core CPI is expected to remain constant at 1.9%.
In corporate news, GlaxoSmithKline has seen positive results from clinical trials of its once-monthly injectable treatment for HIV.
GSK's ViiV Healthcare subsidiary's global, phase III ATLAS study showed a two-drug regime, cabotegravir and rilpivirine, injected once a month had similar efficacy to a standard daily, oral three-drug regimen after 48 weeks of treatment.
Europe focused property investment company CLS Holdings said interim EPRA NAV increased 3.0% to 294.7p a share mainly through EPRA earnings and revaluation uplifts.
The company said the performance of the UK market was likely to be “somewhat subdued in the period leading up to at least Spring 2019 as businesses take a 'wait and see' approach to the impact of Brexit”, and that increased trade tensions remain a threat to global growth.
FTSE 250 infrastructure group Balfour Beatty reported a rise in first-half profit as its turnaround programme bears fruit and the company hiked its dividend by 33%.
In the half year to 29 June, pre-tax profit increased to £56m from £50m, but revenue fell 8% to £3.84bn following the managed reduction in the order book during 2017.
Generic pharmaceutical company Hikma Pharmaceuticals reported its interim results for the six months ended 30 June, with group revenue rising 11% to $989m, or 10% in constant currency.
The company said its operating profit was ahead 54% at $174m year-on-year, with core basic earnings per share of 61.4 cents up 35%, or 38% in constant currency. Its board declared an interim dividend of 12 cents per share, up from 11 cents per share a year ago.