London pre-open: Stocks seen lower ahead of GDP data
London stocks were set for a weaker open on Thursday ahead of the release of UK economic growth figures for the third quarter.
The FTSE 100 was expected to start 29 points lower than Wednesday’s close at 6,929.
CMC Markets’ Michael Hewson said: “Since the shock of the summer Brexit referendum result in June which saw the “Leave” side unexpectedly win it would appear that some protagonists on both sides still appear to be rehashing the same old arguments that became so tiresome during the campaign. From the remainers who prophesied doom and gloom and immediate recession, to the leavers who promised “sunlit uplands” the UK economy appears to have coped quite well despite the initial shock in the immediate aftermath.
“While the falling pound has no doubt cushioned some of the blow, today’s first iteration of UK Q3 GDP will no doubt be used by both sides to reinforce their various hard and soft Brexit narratives, as the political stakes continue to get ratcheted up by either side. What is certain is that the doom and gloom predicted in the lead up to the vote has not happened, though the data will undoubtedly show that the UK economy has slowed in Q3 from the 0.7% in Q2.”
The first release of third-quarter UK GDP is at 0930 BST. In the US, durable goods orders and initial jobless claims are at 1330 BST, while pending home sales are at 1500 BST.
In corporate news, Barclays reported a 35% rise in third-quarter pre-tax profit to £837m as revenue from the fixed income division surged 40%.
Information and analytics company RELX Group said its outlook remains unchanged and it expects underlying revenue, profit and earnings to increase for the full year. In a trading statement for the first nine months of the year, underlying revenue grew 4%, compared to last year, as the FTSE 100 company bought 15 content, data and exhibition assets for about £330m.
Telecommunications provider BT Group announced its results for the second quarter and half year to 30 September on Thursday, with reported revenue up 35%, and growth in underlying revenue - excluding transit adjusted for the acquisition of EE - up 1.1%.The FTSE 100 firm reported earnings per share down 10%, though adjusted earnings per share were up 4%.Underlying EBITDA adjusted for the acquisition of EE was up 0.9%, and the board declared an interim dividend of 4.85p, up 10%.