London pre-open: Stocks seen flat ahead of UK retail sales

Stocks in London were set to open little changed on Thursday as investors looked to the release of UK retail sales data and the European Central Bank rate announcement.

The FTSE 100 was called to open three points higher than Wednesday’s close at 7,025.

UK retail sales are at 0930 BST, while the ECB rate announcement is at 1245 BST. In the US, initial jobless claims are at 1330 BST, along with the Philadelphia Fed survey. Leading indicators and existing home sales are at 1500 BST.

CMC Markets’ Michael Hewson said the retail sales numbers “should give us a good indication as to how Q3 has panned out in terms of the performance of the UK economy”.

“July retail sales rose 1.9%, and though the August numbers showed a small decline of 0.2%, the September numbers, if they come in as expected are expected to point to a strong Q3 performance for the UK economy. Expectations are for a rise of 0.3%, which would translate into a fairly positive Q3.”

As far the ECB announcement is concerned, no change to policy is expected. However, president Mario Draghi is likely to face some questions about reports of a tapering programme.

In corporate news, London Stock Exchange posted its interim management statement for the third quarter to 30 September on Thursday, with total income from continuing operations excluding assets sold and held for sale up 19% to £414.6m.

The FTSE 100 firm said total income from continuing operations was up 14% year-to-date to £1.2bn.

Q3 revenues from continuing operations were up 15% to £376.2m, and up 11% for 9 months year-to-date at £1.1bn.

Anglo-Swiss miner Glencore is to sell its rail coal haulage business in the New South Wales Hunter Valley for $1.14bn to Genesee & Wyoming Australia.

The company agreed to sell Glencore Rail, the third largest coal haulage business in Australia, to GWA, subject to approval from the foreign investment review board.

Rio Tinto lowered its iron ore shipment guidance slightly after it fell 5% the third quarter, reduced by port and rail maintenance.

Expectations for Pilbara iron ore shipments for the full year were revised to 325-330m tonnes from the previous 330m.