London pre-open: Stocks seen up on positive US cues

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Sharecast News | 30 Aug, 2023

London stocks were set to rise at the open on Wednesday following a solid session on Wall Street.

The FTSE 100 was called to open 28 points higher at 7,493.

CMC Markets analyst Michael Hewson said: "As we look towards European session, the continued follow through in the US looks set us up for another positive start for markets in Europe later this morning."

US stocks finished strong, led by the Nasdaq 100 as yields retreated following a sharp slowdown in US consumer confidence in August, and a fall in the number of vacancies to 8.827m in August from 9.165m in July - the lowest level since March 2021.

"The sharp drop in the number of available vacancies in the US helps to increase the probability that the Federal Reserve will be comfortable keeping rates unchanged next month, if as they claim, they are data dependent, and that rates are now close to restrictive territory," said Hewson.

Looking ahead to the rest of the day, investors will eye UK net lending, consumer credit and mortgage approvals for July, at 0930 BST. In the US, the latest ADP employment report is due at 1315 BST, while Q2 GDP data is at 1330 BST.

In corporate news, engineering giant Smiths Group is beefing up its US heating, ventilation and air conditioning operations with the purchase of Ohio-based Heating & Cooling Products.

The unit was acquired for a total of $82m on a cash and debt-free basis from a private seller. HCP, which will be integrated into Smith's Flex-Tek division, enables the company to serve customers in North America with a broader product range, "including HCP's patented axial and radial seal duct technology which improves energy efficiency", Smiths said in a statement.

Direct Line said it had appointed Adam Winslow as chief executive to succeed Jon Greenwood who has been acting CEO since January.

Winslow, who will start with the insurance company in the first quarter of 2024, has led Aviva's UK and Ireland general insurance business. Prior to this he was CEO of Global Life at AIG Life and Retirement (now Corebridge) having held a number of general insurance and life insurance roles in his eight years at AIG.

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