London pre-open: Stocks seen up as investors eye US PCE reading
By Michele Maatouk
Date: Friday 26 Sep 2025
(Sharecast News) - London stocks were set to gain at the open on Friday following losses in the previous session, as investors eyed the latest US PCE reading.
The FTSE 100 was called to open around 30 points higher, having fallen on Thursday after better-than-expected US jobless claims figures and an upward revision to US GDP cast doubt over the prospect of further rate cuts from the Federal Reserve.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Today's core PCE - the Fed's preferred inflation gauge - is expected to show easing price pressures on a monthly basis. On a yearly basis, core PCE is expected to remain sticky near 3%. Yes, that's above the Fed's 2% target, but the Fed has been more tolerant of overshooting lately, pointing to downside risks to jobs.
"As such, data in line with expectations - or ideally softer - could revive risk appetite. A hotter print, though, would prolong the pause to the risk rally and reinforce the idea that the Fed may stay patient well into next year before cutting."
The PCE reading for August is due at 1330 BST.
In corporate news, Pennon Group said it remained on track to return to profitability, despite the hot summer weather ramping up costs.
Updating on trading, the FTSE 250 utility said there had been high demand for clean water over the summer months.
That had been more than offset in revenues, however, by increased people opting to have meters installed and the profiling of tariffs to smooth customer bills, deferring revenue into 2026/27.
Operating costs also rose, due to increased demand and pressure on networks.
However, it continued: "Despite this, we have made a strong return to profitability, with earnings before interest, tax, depreciation and amortisation anticipated to increase by around 60% year-on-year."
Permira has been given another month to make a firm offer for corporate services firm JTC as talks between the two boards continue on a fourth revised offer valuing the company at around £2bn.
Clean energy group Ceres Power scaled back its full-year sales guidance by nearly 40% after reporting weaker results for the first half.
The company said the "most probable revenue outturn" for 2025 will now be just £32m due to the uncertain timing of a new manufacturing licence agreement.
Forecasts are for a figure closer to £52.5m, according to company-compiled consensus estimates, after Ceres guided to a "broadly similar" top line to 2024.
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