London pre-open: Stocks seen higher after Monday's selloff
By Michele Maatouk
Date: Tuesday 11 Mar 2025
(Sharecast News) - London stocks were set to rise at the open on Tuesday following heavy losses in the previous session.
The FTSE 100 was called to open around 30 points higher.
Stephen Innes, managing partner at SPI Asset Management, said: "Wall Street got steamrolled Monday as risk aversion took centre stage, sending US stocks tumbling, Bitcoin reeling, and the VIX - the market's so-called 'fear gauge'- spiking to its highest level of the year.
"The culprit? Mounting concerns that Trump's economic shake-up could knock the US growth engine off its axis, triggering a recession, hence the widespread risk-off move."
On home shores, data out earlier from the British Retail Consortium and KPMG showed that retail sales growth slowed again in February as poor fashion sales weighed down non-food spend.
The monthly BRC-KPMG Retail Sales Monitor report showed that UK retail sales rose at a year-on-year rate of 1.1% last month, compared with a 2.6% gain in January and the 3.2% growth registered in December.
However, while this was below the three-month average growth rate of 2.4%, this was still above the 12-month average of 0.8%.
Food sales were 2.3% higher than last February, though non-food sales were flat year-on-year.
"While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics. Jewellery, watches and fragrance sold well thanks to Valentine's Day, reversing declines seen last year, and furniture also returned to growth," said Helen Dickinson, chief executive of the BRC.
"Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on Spring and Summer wardrobes."
Looking ahead, Dickinson said retailers will have "little choice" but to raise prices or cut investment ahead of the £7bn in new costs, with higher wage bills, National Insurance contributions and a new packaging levy set to kick in.
"It is time for government to course correct to ensure investment and growth are not undermined," she said.
In corporate news, housebuilder Persimmon said its net private sales rate per outlet per week was up 14% in the first nine weeks of 2025 with a current private forward order book of £1.15bn, 27% higher year on year.
Underlying pre-tax profit for 2024 was up 10% to £395.1m as completions rose 7%.
"The underlying market fundamentals remain strong and we are encouraged by the further improvement in our sales rates in the early weeks of this year. The government's welcome planning reforms and pro-housebuilding agenda demands more of the high-quality, affordable homes which are Persimmon's core strength, providing a positive tailwind," Persimmon said.
Spirax Group managed to grow organic revenues across the board in 2024 despite industrial production growth being weaker than expected in the second half.
The thermal energy and fluid technology solutions company posted annual revenues of £1.67bn and an adjusted operating profit of £334m, both up 4% on an organic basis but 1% and 4% lower in reported terms, respectively, due to currency movements.
For 2025, Spirax pointed to organic growth consistent with 2024.
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