London pre-open: Stocks seen down after China disappointment
By Michele Maatouk
Date: Tuesday 08 Oct 2024
(Sharecast News) - London stocks were set to fall at the open on Tuesday as investors were left disappointed by a lack of new stimulus measures from China.
The FTSE 100 was called to open down around 58 points.
Danske Bank said: "The chairman for the National Development and Reform Commission said that the Chinese government is fully confident that it will reach its economic and social development goals for this year and said that some of the 2025-budget will be issued this year to support projects.
"Since late September the government pushed economic stimulus package to support the economy."
Investors were unimpressed due to the absence of any further stimulus, as analysts had been expecting the NDRC to roll out measures worth between CNY 2 trillion and CNY 3 trillion.
In corporate news, convenience food producer Greencore lifted full-year profit guidance after a strong fourth-quarter performance.
The company, which makes sandwiches, soups and ready meals, said it expected adjusted operating profit of £95m-97m for the 12 months to September 27. Like-for-like revenue growth in the final three months was 3.7% and 3.4% for the year.
Imperial Brands beefed up its shareholder returns programme by £400m after confirming it finished the fiscal year with in-line results, with growth in both tobacco and next generation products.
Group adjusted operating profit growth over the 12 months to 30 September was "close to the middle" of the mid-single digit range guidance, the company said.
For the current fiscal year, Imperial is targeting £2.8bn of returns, up from a £2.4bn commitment in the year just gone, comprising a 13.6% enlarged share buyback plan of £1.25bn and £1.5bn in cash dividends.
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