London pre-open: Stocks seen higher ahead of US inflation
By Michele Maatouk
Date: Wednesday 10 Apr 2024
(Sharecast News) - London stocks were set to rise at the open on Wednesday as investors eyed the latest US inflation reading.
The FTSE 100 was called to open around 40 points higher.
There are no UK macro points of note due, but the US consumer price index for March is scheduled for release at 1330 BST, while the latest FOMC minutes are at 1900 BST.
Danske Bank said: "Today's focus will be on the US March CPI, where we forecast both headline and core inflation at +0.3% m/m SA.
"Higher oil prices continue to lift headline inflation, but the Fed focuses more on the underlying price pressures, not least after concerning upticks in services inflation and strong labour market in early 2024. In the evening, minutes from FOMC's March meeting are also due for release."
In corporate news, Tesco struck a confident tone for the current financial year after reporting jump in profits and volumes.
The UK's biggest retailer said group sales, excluding VAT and fuel, rose 7.2% in the 52 weeks to 24 February, to £61.48bn.
Including fuel, sales rose 4.2% to £68.19bn. Fuel sales fell 17.2%, primarily due to reduced retail prices.
On a like-for-like basis, retail sales rose 6.8%. Tesco said inflation had fallen throughout the year, with volume growth seen in the UK and Ireland across the second half.
Retail adjusted operating profit rose 10.9% to £2.76bn, while adjusted operating profits rose nearly 13% to £2.83bn.
Affordable homes developer Vistry said it has signed two new deals with Homes England to deliver 1,000 mixed-tenure homes in the Midlands.
The first deal involves the regeneration of City Hospital in Birmingham, which has outline planning permission for 750 homes, of which more than 50% will be affordable or private rent tenures.
The second deal will see Vistry build 250 mixed-tenure homes in Hardingstone, Northamptonshire, which already has more than 50% of sites presold.
Energean announced the completion of a farm-in agreement with Chariot for offshore Morocco, securing participation in the Lixus and Rissana licences.
With Energean as operator, the partnership would drill an appraisal well on the Anchois field in the third quarter of this year, using the Stena Forth drill ship under a signed contract.
It said the move included a $10m cash consideration, and targeted further exploration of gas resources, aiming for an additional 11 billion cubic metres of gross unrisked prospective resource.
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