London pre-open: Stocks seen up on positive US cues; BP, HSBC in focus

London stocks were set to rise at the open on Tuesday following a solid session on Wall Street, as investors digested results from the likes of BP, HSBC and Hargreaves Lansdown.

The FTSE 100 was called to open around 30 points higher, with all eyes firmly on Wednesday's Budget.

Data released earlier by the British Retail Consortium showed that shop price deflation accelerated in October, with the BRC urging the chancellor to take action to keep prices low.

Prices at UK tills were 0.8% lower than 12 months ago, compared with a 0.6% year-on-year fall in September, according to the BRC/NielsenIQ Shop Price Index for October.

This was the third straight month of annual deflation and lowest rate of change since August 2021.

Non-food prices fell by 2.1%, unchanged from the preceding month, while food prices grew by 1.9%, down from 2.3% previously, with fresh food inflation in particular slowing to 1.0% from 1.5%.

The BRC said that food inflation eased as retailers stepped up their seasonal deals, while non-food items like electrical and DIY products were priced lower as retailers capitalised on the recent pick-up in the housing market.

"Households will welcome the continued easing of price inflation, but this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed government regulation," said BRC chief executive Helen Dickinson.

"Retail is already paying more than its fair share of taxes compared to other industries. The chancellor using tomorrow’s Budget to introduce a Retail Rates Corrector, a 20% downwards adjustment, to the business rates bills of all retail properties will allow retailers to continue to offer the best possible prices to customers while also opening shops, protecting jobs and unlocking investment."

In corporate news, HSBC announced another $3bn share buyback as it posted better-than-expected third-quarter profits.

In the three months to the end of September, pre-tax profit rose 10% on the same period a year earlier to $8.5bn, versus analysts’ expectations of $7.6bn.

HSBC said revenue increased 5% to $17bn, reflecting higher customer activity in its wealth products in Wealth & Personal Banking, supported by volatile market conditions, and in Foreign Exchange, Equities and Global Debt Markets in Global Banking and Markets.

Chief executive Georges Elhedery said: "We delivered another good quarter, which shows that our strategy is working. There was strong revenue growth and good performances in Wealth and Wholesale Transaction Banking."

BP posted a slide in quarterly profits, hit by weaker refining margins, although the decline was not as steep as feared.

Underlying replacement cost profit, a key measure for the oil and gas major, was $2.3bn in the third quarter. That was down on both the second quarter’s $2.8bn, and last year’s $3.3bn.

BP said the results reflected weaker refining margins, a weak oil trading result and lower liquids realisations, although they were partly offset by higher gas realisations.

Elsewhere, Hargreaves Lansdown reported assets under administration of £157.3bn for the quarter ended 30 September, with growth driven by £1.5bn in positive market movements and £0.5bn in net new business.

The FTSE 100 company said it saw a net increase of 18,000 clients, with notable gains in SIPP, ISA, and Active Savings accounts, while client retention held at 92%.

Revenue rose to £196.5m, boosted by increased trading activity and higher platform revenue, offsetting lower revenue on cash due to a reduced net interest margin.