London pre-open: Stocks set for flat start despite tumble on Wall Street
By Alexander Bueso
Date: Wednesday 27 Apr 2022
(Sharecast News) - Equity futures are pointing to a flattish start to trading for London's top-flight index on Wednesday, despite another rough and tumble session overnight on Wall Street.
All the major US stock market indices fell by roughly 3% on average amid another leap higher in volatility. Yet futures tracking the FTSE 100 were rising by 10.50 points to 7,370.0.
Commenting on the possible implications of the drop in US stocks, Michael Hewson, chief market analyst at CMC Markets UK, told clients: "Yesterday's market weakness was led by the Nasdaq 100, which slid to its lowest levels in over a month.
"The inability to hold onto the attempted rally is not only worrying but also speaks to a general lack of confidence more broadly about the economic outlook, as well as the ability of central banks to engineer a "soft landing" as they look to tackle inflation."
On the economic calendar for today, at 1100 GMT, the Confederation of British Industry will publish the results of its Distributive Trades survey for the month of April.
In the US meanwhile, the main economic release of the session will be the advanced report on foreign trade covering the month of March at 1330 GMT.
Across the Channel, European Central Bank president, Christine Lagarde, will participate at an event at Hamburg harbour starting from 1130 GMT.
Investors will also be monitoring surveys on French and German consumer confidence referencing the months of April and May, respectively.
Lloyd's posts decline in profits
Retail banking giant Lloyd's Bank reported a fall in first-quarter pre-tax profits as higher net income was offset by an underlying impairment charge.
The UK-based bank posted profits of £1.6bn on Wednesday, up from £1.8bn a year earlier, and said the underlying impairment charge of £200.0m reflected a low incurred charge and limited impact from a revised economic outlook, including higher inflation offset by stronger house prices and unemployment.
Housebuilding company Persimmon said on Wednesday that it was currently trading in line with expectations, with demand remaining strong and private average sales rates rising 2% year-on-year.
Persimmon, which also highlighted its "robust" forward order book of roughly £2.8bn, anticipates that full-year completions will be weighted towards the second half, with first half completions being lower than those delivered in 2021.
Primary Health Properties reported "good progress" in converting its year-end pipeline into committed deals in its first quarter on Wednesday.
The FTSE 250 healthcare property operator said that, including standing investments, direct and forward-funded developments and asset management projects, it had continued to generate and grow a "strong pipeline" totalling £360m in the UK and €145m (£122m ) in Ireland, of which £65m and €87m was in legal due diligence. In the quarter, the firm said it generated an additional £0.9m, or 0.6%, of extra rental income from its rent review and asset management activities.
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