London pre-open: Stocks seen up ahead of US inflation data

London stocks were set to rise at the open on Wednesday following a positive close on Wall Street, as investors eye the latest US inflation data.

The FTSE 100 was called to open 17 points higher at 7,299.

CMC Markets analyst Michael Hewson said: "European markets saw another positive session yesterday, rising for the third day in a row in anticipation that China’s efforts to support its property sector may translate into further measures to support a rebound in economic activity. The FTSE 100 once again underperformed as the strong pound and weakness in pharmaceuticals acted as a drag.

"US markets also closed higher on optimism that today’s CPI report wouldn’t spring any unpleasant surprises. This positive finish looks set to see markets here in Europe open slightly higher in a couple of hours’ time."

The US consumer price index for June is due at 1330 BST.

In corporate news, international building materials distributor and DIY retailer Grafton Group held annual guidance as first-half revenues rose 3.2% despite the cost-of-living crisis hitting volumes.

The company said revenue for the six months to June 30 was £1.19bn compared with £1.15bn in the prior year.

Average daily group like-for-like revenue in the second quarter was slightly stronger against the prior year than the performance in the first quarter, it added.

Elsewhere, Me Group posted a jump in interim profit and revenue as it hailed progress across all of its key business areas - photobooth, laundry and digital printing services - and in all of its 19 operating markets.

In the six months to 30 April, pre-tax profit rose 36.7% to £27.2m, on revenue of £143.8m, up 24.7% on the same period a year earlier.