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

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

The FTSE 100 was called to open 35 points higher at 7,210.

CMC Markets analyst Michael Hewson said: "US markets finished the session strongly higher, with the S&P500 finishing higher for the first time since last Wednesday, with the decline in oil prices and yesterday’s PPI report offering hope that inflation pressure might well be close to subsiding, after core PPI came in softer than expected.

"As a result of yesterday’s strong finish European markets look set to open higher this morning, however any rally is likely to find itself pushing against the headwinds of headlines out of Ukraine, as well as the prospect that Russia might default on a bond payment later today.

"A $117m interest payment is due today on a US dollar bond. Russia has said it will pay in roubles which would start the clock ticking on a potential default.

"It’s also set to be a big day for the US economy with the latest US retail sales report for February, ahead of the latest interest rate decision for the Federal Reserve Open Market Committee."

In corporate news, promotional product marketer 4imprint reported soaring profits as order numbers recovered from Covid lockdowns.

The company said annual pre-tax profit rose to £30.23m from £3.84m a year earlier as processed orders soared to 1.42m from 960,000 in 2020.

"Challenges continue with regard to the ongoing pandemic, supply chain disruption and inflationary pressures. However, the group has a clear strategy and is financially strong. Trading results in the first few weeks of 2022 have been encouraging," the company said.

Computer services provider Computacenter said it had delivered double-digit revenue and profit growth in 2021, leading the group to hike its full-year dividend.

Computacenter said full-year revenues were 23.6% higher at £6.72bn, while adjusted pre-tax profits were 27.5% stronger at £255.6m. Diluted earnings per share shot up 20.3% to 160.9p. The FTSE 250-listed firm, which credited its improved performance to the "consistent implementation" of its strategy and focusing on the long-term consequences of its decisions, also opted to raise its full-year dividend per share by 30.8% to 66.3p.