London pre-open: Stocks seen touch higher but Trump worries remain
London stocks were set for a slightly firmer open on Thursday following a steady session in the US, although worries about Donald Trump’s economic agenda remained.
The FTSE 100 was expected to open 13 points higher at 7,337.
CMC Markets’ Michael Hewson said: “While European markets slipped back sharply yesterday, US stocks managed to stabilise after their big falls on Tuesday. This stabilisation is likely to see a slightly more positive open for Europe today however the catalysts that prompted Tuesdays slide remain a concern for investors.
“Concerns remain about the ability of the new US administration to deliver on its promises on tax and banking reform, as well as infrastructure spending in the time expected given the current disagreements surrounding health care reform.
“If Trump is unable to deliver on his health care promises, where the majority of Republicans are broadly in agreement it will inevitably beg the question as to how he can deliver on anything else, which means a defeat in today’s House vote could trigger further investor nervousness, about deliverables.”
On the data front, UK retail sales are at 0930 GMT, while the CBI distributive trades survey is at 1100 GMT.
In the US, Federal Reserve Chair Janet Yellen is due to give a speech in Washington at 1245 GMT, while Minneapolis Fed President Neel Kashkari is scheduled to make a speech at 1800 GMT.
In corporate news, clothes retailer Next reported underlying pre-tax profits fell 3.8% to £790.2m last year and warned 2017 will be "another tough year" due to a shift away from spending on clothing and a squeeze on UK wages.
Furthermore, management admitted their focus on following fashion trends had seen them neglect their "heartland product" and so sales are expected to fall in the first half of the year before measures to resurrect the product range lead to an expected recovery from the autumn season.
Medical technology firm ConvaTec has launched its skin protectant incontinence wipes in the US.
Sensi-Care wipes, which helps prevent incontinence-associated dermatitis, will allows the company to enter a $500m wipes market in the US and adds to its skin portfolio which includes Aloe Vesta cleansers and moisturisers.
LondonMetric Property unveiled a £97m placing on Thursday to fund the acquisition of “last mile assets.
It also revealed a series of deals; the exchange of contracts with Michelin to build a new 137,000 sq ft distribution centre at its site in Stoke and another with Eddie Stobart to build a single new 180,000 sq ft distribution unit at its logistics centre in Dagenham.
Property, residential, construction and services company Kier Group posted its results for the six months to 31 December, with revenue falling 1% to £2bn.
The company said the results were in line with expectations, as profit from operations improved 4% to £56.5m, with the board saying there remained a “strong pipeline” of growth opportunities.
Profit before tax was 12% higher at £46.3m, and the board declared an interim dividend per share of 22.5p - up 5% on a year prior.