London pre-open: Stocks seen lower; Nice terror attack in focus

Stocks in London were expected to open lower on Friday following a terror attack in Nice that has left at least 84 people dead, with travel and leisure issues likely to suffer losses.

London’s FTSE 100 was set to open 17 points lower than Thursday’s close at 6,637.

“The lower open comes despite some more positive economic data from China including a growth rate of 6.7% year-on-year in the second quarter. Chinese industrial production and retail sales growth for June also grew at faster rate than expected,” said CMC Markets’ Jasper Lawler.

In corporate news, Homeserve said it was trading in line with expectations and expected to deliver “good growth” in the current year.

“Trading, as usual, will be weighted towards the second half of the financial year, reflecting the

seasonality of our marketing activity and associated renewals profile,” Homeserve said.

“The UK business is performing as anticipated and during July we signed a new affinity partnership with Dee Valley Water, a business providing water services to over 250,000 Customers in North East Wales and North West Cheshire.”

Transport operator FirstGroup said first quarter revenue decreased by 1.4% in constant currency, with revenue growth in First Student, First Transit and First Rail offset by decreases in First Bus and Greyhound.

It added that there was no change to overall outlook for the current year, “recognising that the degree to which potential net currency benefits as a result of our significant US dollar based businesses will be offset by a more challenging macroeconomic outlook for our UK businesses is uncertain, following the outcome of the EU referendum”.

The company said it was too soon to judge the overall effect of the UK's decision to leave the European Union on the group.