London pre-open: Stocks seen down after US losses
By Michele Maatouk
Date: Wednesday 17 May 2023
(Sharecast News) - London stocks were set to fall at the open on Wednesday following a downbeat session on Wall Street, as investors continue to keep their eye on US debt ceiling talks.
The FTSE 100 was called to open 11 points lower at 7,740.
CMC Markets analyst Michael Hewson said: "The weak finish in the US looks set to weigh on markets in Europe when they open later this morning, however there isn't really any real direction to proceedings currently with markets seemingly stuck in a range.
"Today's proceedings are likely to play out in a similar fashion with little on the docket apart from the final reading of EU CPI for April, with Fed speakers appearing to be taking the day off, after two days of hawkish chatter.
"With the ECB stepping down the pace of its rate hiking cycle earlier this month, raising rates by 25bps, in response to a slight fall in core prices in the April flash CPI to 5.6% the governing council will be hoping that this early fall is confirmed in today's final numbers, and thus ease the pressure on the central bank to hike further."
In corporate news, JD Sports Fashion said it expected annual profit to pass £1bn after a record result in the year to January 28.
The seller of trainers and sportswear posted profit before tax and exceptional items of £991.4m, up from £947m a year earlier and beating guidance.
It now expects profit before tax and adjusted items for the 53-week period to 3 February 2024 to be in line with the current average consensus expectations of £1.03bn.
Elsewhere, Watches of Switzerland hailed a "strong" full-year performance in line with guidance, as it reported record revenues and profitability.
In an update for the year to 30 April, the luxury watch retailer said group revenue rose 25% to £1.5bn and said that adjusted pre-IFRS 16 EBIT is expected to be between £163m and £167m, up from £130m a year earlier.
Chief executive Brian Duffy said: "Although, as expected, the second half of FY23 saw a more challenging trading environment, demand remains strong and continues to exceed supply, with client registration lists continuing to grow."
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