London pre-open: Stocks seen down as attention turns to data points

London stocks were set to fall at the open on Monday as investors looked ahead to key economic data points during the week.

The FTSE 100 was called to open down around 20 points.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "This week, investors’ attention will gently shift from earnings to economic data. At this point, the US economy has been resilient and the latest uptick in the CPI data helped investors understand that the Fed will not be cutting its rates any time before summer. The first Fed cut expectation is seen coming by June, with a little less than 70% probability and the Fed is seen cutting the rates by 80bp this year.

"Also due this week, the latest US GDP update - due Wednesday - is expected to confirm a 3.3% growth in Q4, with significantly lower price index. And on Thursday, the PCE data are expected to confirm relatively soft figures - softer than the CPI, most probably thanks to the different weights that the index attributes to different categories of goods and services.

"In all cases, a strong growth could revive the goldilocks optimism if inflation numbers continue to trend lower. For the market rally to continue, we just need strong growth and soft inflation data from the US. Easy, no?"

In UK corporate news, distribution specialist Bunzl posted a 10% rise in annual profits, lifted its dividend and maintained 2024 profits guidance despite a dip in revenue as inflation started to ease.

Pre-tax profit for 2023 came in at £698.6m on revenue of £11.8bn, down 2%. Shareholders will receive 68.3p a share.

The acquisition-hungry group also announced two more purchases - an 80% stake in UK-based Nisbets for £338m and Pamark in Finland for an undisclosed sum.

GSK reported positive results from its trial for gepotidacin, an oral antibiotic aimed at treating uncomplicated urogenital gonorrhoea in adolescents and adults.

Gepotidacin demonstrated non-inferiority to the current leading combination treatment regimen, intramuscular ceftriaxone plus oral azithromycin, meeting the primary efficacy endpoint based on microbiological response at the test-of-cure visit.

It said the results were crucial given the rising rates of gonorrhoea globally, with implications for sexual and reproductive health, adding that it planned to share detailed findings with health authorities while continuing development for other indications, including uncomplicated urinary tract infections.