London pre-open: Stocks seen higher ahead of inflation data

Stocks in London were set to open in the black on Tuesday as investors eyed the release of UK inflation figures.

The FTSE 100 was called to open 33 points higher than Monday’s close at 6,786.

UK CPI, RPI and PPI for October are at 0930 GMT, while US retail sales are at 1330 GMT.

CMC Markets’ Michael Hewson said: “Today’s October CPI inflation data from the UK is expected to show that prices edged up again, this time to 1.1%, up from 1% in September, while the latest RPI measure is expected to jump from 2% to 2.3% on an annualised basis.

“Input prices which have been a significant forward looking indicator in recent PMI data releases are also expected to show an increase from 7.2% to 9.3% While this is unwelcome news it was always going to be the case that the oil price effect of the last two years would start to work its way out of the numbers, and it is this effect we are now starting to see, though we did get some welcome news last night when the big supermarket retailers all announced 3p a litre cuts to their own petrol prices on the back of the recent decline in the oil price and rebound in the pound.”

In corporate news, technology group Smiths said first quarter revenues rose 16% on a reported basis reflecting the collapse in the pound against the dollar and euro in the wake of the Brexit result.

Expectations for the full year remain unchanged, the company added.

At 28 October, net debt was £983m and has since been cut further with the receipt of proceeds from the divestment of John Crane's Artificial Lift business and Smiths Medical's Wallace franchise.

Assurance provider Intertek has partnered with ABC Analitic, a water test provider, to form an environmental services joint venture in Mexico.

The company, which will own the majority of the joint venture, will use it to become a market leader in assurance, testing, inspection and certification to government environmental projects, regulators and corporations.

Aerospace, defence and energy component and subsystem company Meggitt issued a scheduled trading update on Tuesday, saying trading since the half year had been in line with expectations.

The FTSE 250 firm said third quarter revenue growth of 6% on an organic basis - excluding effects of mergers and acquisitions, and foreign exchange - was consistent with the previously announced expectation of a greater second half weighting of organic revenue and earnings than in 2015.

On a reported basis, revenue grew by 28%, including the effects of M&A and foreign exchange.