London pre-open: Stocks seen muted as investors mull Microsoft, Alphabet results

London stocks were set for a fairly muted open on Wednesday despite solid US and Asian sessions, following mixed reactions to results from Microsoft and Google owner Alphabet.

The FTSE 100 was called to open just five points higher at 7,394.

CMC Markets analyst Michael Hewson said: "Both sets of numbers were impressive, although judging by the market reaction the market had a somewhat mixed view, sending Alphabet lower and Microsoft higher in aftermarket trading, even though both beat expectations on revenues and profits."

In corporate news, Lloyds Bank reported a massive jump in third-quarter profits as it continued to cash in on higher interest rates, despite a reduction in lending to customers amid tough macroeconomic conditions.

Pre-tax profit for the three months to September 30 soared to £1.85bn from £576m a year earlier.

Underlying net interest income rose 1% to £3.44bn with the net interest margin - the difference between loans and savings rates - up 10 basis points year-on-year to 3.08% but down six basis points in the quarter "given the expected mortgage and deposit pricing headwinds", the bank said.

Loans and advances to customers fell 1% to £455bn.

Precious metals miner Fresnillo said it remains on track to hit full-year production targets despite both silver and gold output falling in the third quarter.

Silver production totalled 14.1m ounces in the three months to 30 September, down 5.1% on the second quarter but up 3.8% on last year, as the ramp-up of its new Juanicipio mine offset lower production at Noche Buena as it nears its end of life.

Gold output was 132,600 ounces, down 13% on the second quarter and 16.7% lower than last year, after an electrical fault and lower ore grades at the Herradura project, along with a fall-off of volumes from Noche Buena.

Halma announced two acquisitions worth £46.5m.

In the environmental and analysis sector, its Alicat Scientific subsidiary acquired Alpha Instrumatics, a UK-based company specialising in high-precision trace moisture measurement devices, expanding Alicat's product range.

In the healthcare sector, IZI Medical Products had meanwhile acquired AprioMed for SEK 130m, enhancing its offerings for minimally-invasive procedures related to bone biopsies.