London pre-open: Stocks seen lower as investors mull China data, ECB

London stocks were expected to open a little lower on Friday following the release of Chinese inflation figures, as investors continued to mull over the European Central Bank’s announcement.

The FTSE 100 was set to open nine points weaker than Thursday’s close at 6,847.

CMC Markets’ Jasper Lawler said: “Stocks in Europe look set for a lower open as investors continue to digest disappointment from the latest ECB meeting while a big drawdown in US oil inventories has sent Brent crude back towards $50 per barrel.

“European markets tumbled in afternoon trade on Thursday after the ECB failed to meet the lowest of expectations for additional stimulus.

“There was some scope for the European Central Bank to extend the end date of asset purchases or change the composition of those purchases. Neither of these happened, which was not a big surprise, but there was evident dismay in markets that according to Mr Draghi, they were not even discussed.”

Chinese inflation figures were also in focus, as consumer price inflation rose 1.3% in August from a year earlier, down from July’s 1.8% and marking the lowest level since October 2015. It was also weaker than the 1.7% jump expected by economists.

The country’s producer price index fell 0.8% in August from a year ago, which was more or less in line with expectations and compared to a 1.7% fall in July.

On the UK data front, trade balance and construction output figures are at 0930 BST. In the US, wholesale inventories are at 1500 BST.

In corporate news, pub operator JD Wetherspoon posted its preliminary results for the year to 24 July on Friday, with revenue rising 5.4% to £1.595bn, and like-for-like sales improving 3.4% over the prior year.

The FTSE 100 firm’s profit before tax was up 3.6% at £77.8m, with operating profit dropping 2.5% to £109.7m and earnings per share growing 2.8% to 48.3p.

Private healthcare company Mediclinic said “significant progress” was made integrating the Al Noor Hospitals business, but expectations for its Abu Dhabi operations will be lower than anticipated.

The company said whilst expectations in the medium term remain unchanged, and business integration continues, Mediclinic Middle East is expected, for the year ending 31 March 2017, low to mid-single digit revenue growth and underlying EBITDA margins of mid to high teens with performance being weighted to the second half of the year.