London pre-open: Stocks seen up ahead of busy week

by | Sep 11, 2023

(Sharecast News) – London stocks were set to rise at the open on Monday ahead of a busy week.
The FTSE 100 was called to open around 30 points higher at 7,508.

Investors were eyeing the release of UK unemployment figures on Tuesday, while on Wednesday and Thursday, the latest US inflation data and a rate announcement by the European Central Bank are due.

Data released earlier by China’s National Bureau of Statistics showed that headline consumer price inflation ticked up 0.1% in August from a year earlier following a 0.3% decline in July. Core inflation – which excludes food and fuel prices – was unchanged at 0.8%.

Pantheon Macroeconomics said: “The uptick this month was largely driven by a smaller drag from energy prices – a negative contribution of 0.1pp versus 0.4pp in July – thanks to rising oil prices recently and a more favourable carryover effect.

“Petrol prices fell at a much slower pace at 4.9% versus a fall of 13.5% in the previous month.”

In UK corporate news, Vistry said it planned to merge its housebuilding operations with its partnerships business by the end of the year as it set new medium-term earnings targets.

The UK home builder said it was now aiming for return on capital employed of 40%, revenue growth of 5-8% a year and operating profit of £800m with an operating margin of at least 12%.

Vistry posted an 8.4% fall in adjusted half-year pre-tax profits to £174m amid a tough housing market where prices have been falling in response to higher mortgage costs.

Elsewhere, GSK announced that Japanese regulators are reviewing its proposed new momelotnib treatment for people with myelofibrosis – a type of blood cancer.

Momelotnib, which is currently not approved in any market, is hoped to address the significant medical needs of myelofibrosis patients, especially those with anaemia. The new drug application, which included data from clinical trials addressing key clinical manifestations of myelofibrosis, has now been accepted for review by Japan’s Ministry of Health, Labour and Welfare.

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