London pre-open: FTSE to open higher as market continues post-Trump recovery

The FTSE 100 is expected to open 34 points higher at 6,945 on Thursday as the market recovers the from the initial shock of Donald Trump’s victory in the US presidential election.

London’s top index closed in the green on Wednesday, rebounding from a drop following the election of Trump. Amid the uncertainty a Trump presidency brings, investors seemed to cheer the fact it meant a rate hike by the Federal Reserve is less likely in December. Trump also indicated further spending for infrastructure in a boost to industrial stocks.

“A huge number of unanswered questions remain, including what type of President Donald Trump will be, the one we heard on the campaign trail, or one tempered with the enormity of the task in front of him and the expectations that go with that?” said Michael Hewson, chief market analyst at CMC Markets.

“On the plus side, the administrative logjam at the top of US government that has been a constant irritant for the last few years is now likely to be a thing of the past given that the Republicans now control both the Senate and Congress which means, given Trump’s acceptance speech yesterday that we could see some form of fiscal stimulus in the form of infrastructure spending, as he sets out his future plans.”

Turning to Thursday’s agenda, the economic calendar looks thin on the ground. Among the few releases, the RICS House Price Balance index jumped to 23% in October from 18% the previous month, surprising analysts who had expected no change.

The US sees the initial jobless claims report at 1330 GMT and hears from Fed speakers John Williams and James Bullard later in the session.

On the company front, ITV’s revenues increased as it rebalances the television network but advertising revenue for the third quarter was down due to political and economic uncertainty.

For the nine months ended 30 September, external revenue increased 5% to £2.15bn, including currency benefit, compared to last year.

Private equity group 3i Infrastructure reported an increase in net asset value in the first half as its investments had little impact from the geopolitical uncertainty and financial market volatility. Net asset value per share rose to 551p at 30 September from 463p at 31 March. The company made a private equity gross investment return of £989m, supported by “continued strong financial and operational performance across the portfolio”.

Electricity infrastructure operator National Grid posted its half-year report, with adjusted earnings per share of 28.2p, in line with last year, and operating profit of £1.9bn, up 1% including favourable timing and the effect of foreign exchange.

The FTSE 100 company made capital investment of £2.2bn during the period, up 12% - or 6% at constant currency. It declared an interim dividend of 15.17p per share, in line with the board’s dividend policy.

Hikma Pharmaceuticals said that it is currently generating “good” revenue growth and expects revenue for the full year to rise by around 35% to $2bn at constant currency.

Chairman and chief executive Said Darwazah said: "Across the group, we are improving the quality of sales and focusing on profitability. Our global Injectables business is delivering good growth and extremely strong margins. In MENA, our focus on strategic products and greater operating efficiencies is helping to absorb strong currency headwinds. In Generics, the integration of the West-Ward Columbus acquisition is progressing well and we are rapidly implementing cost savings.