London pre-open: Stocks seen higher ahead of UK retail sales, Yellen speech

Stocks in London were set to open higher on Thursday as investors eyed UK retail sales data and a speech by Federal Reserve chair Janet Yellen.

The FTSE 100 was called to open 21 points firmer than Wednesday’s close at 6,770.

CMC Markets’ Michael Hewson said: “Despite all the uncertainty being generated around the UK’s future in the EU, the economy continues to tick along nicely even if as expected the economy starts to hit more turbulent waters in the New Year, as a raft of widely anticipated price rises start to filter through.

"For now wages are rising at 2.4%, unemployment is at 11 year lows and inflation on the RPI measure is at 2%. Earlier this month the latest BRC retail sales numbers for October showed that consumers had started to spend again with a sharp rise of 1.7%, from 0.4% in September. Whether today’s official retail sales numbers for October are anywhere near as good remains to be seen, but when set against an August and September performance of 0% and -0.1%, then we could well be due a decent number, with a rise of 0.5% expected.”

UK retail sales are at 0930 GMT. In the US, the consumer price index, building permits, housing starts and initial jobless claims are at 1330 GMT, and Yellen is due to testify before Congress at 1500 GMT.

In corporate news, Royal Mail’s half year revenue increased slightly due to its European business, while the FTSE 100 company gears up for a busy Christmas, which its full year performance depends upon.

For the six months ended 25 September, revenue nudged up by 1% to £4.58bn, compared to last year, driven by a good performance from GLs, its continental European parcel business.

Underlying pre-tax first half profits at specialist chemicals company Johnson Matthey rose 5% to £219.6m on revenues of £5.6bn, down 2%.

Reported pre-tax profits fell 36% to £210m. The interim dividend was lifted 5% to 20.5p.

AstraZeneca announced the completion of the licensing agreement between MedImmune, its global biologics research and development arm, and Allergan, for the global rights to MEDI2070 on Thursday.

The FTSE 100 firm said MEDI2070 is an IL-23 monoclonal antibody currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease and ready for Phase II for ulcerative colitis, diseases that sit outside AstraZeneca's three main therapy areas.

“AstraZeneca will not retain a significant ongoing interest in MEDI2070,” its board said in a statement.