London pre-open: Stocks seen weaker ahead of data

London stocks were set for a weaker open on Tuesday despite a solid session on Wall Street, as investors braced for a slew of key data releases.

The FTSE 100 was expected to open 16 points lower than Monday’s close at 6,925.

Michael Hewson, chief market analyst at CMC Markets, said: “This week is set to be an important indicator as to the effect any post Brexit shock has had on the UK economy. It’s probably too early that the latest inflation numbers for July will offer any clues with respect to any upward pressure in prices on a month on month basis as a result of the sharp decline in the value of the pound; however we could see it show up in some of the import prices data.

“As regards July CPI, this is expected to remain at 0.5%, unchanged from June, though we could see some upward pressure on the monthly number as a result of higher petrol pump prices, while RPI is expected to increase slightly to 1.7% from 1.6%. Core prices are expected to stay unchanged at 1.4%.”

On the data front, 0930 BST will be busy, with the release of the UK consumer price index, retail price index and producer price index. In the US, housing starts and CPI are at 1330 BST and industrial production is at 1415 BST.

In corporate news, Chilean copper mining colossus Antofagasta reported lower first-half revenue but it improved earnings and kept its dividend flat thanks to some heavy cost cutting.

“A 24.7% reduction in operating costs offset the decline in the copper price and lower sales volumes resulting in EBITDA of $571.6m, 2.3% higher than in the same period last year," said chief executive Iván Arriagada.

AstraZeneca has completed a licensing agreement with LEO Pharma, a specialist in dermatology care, for the global licence to monoclonal antibody tralokinumab in skin diseases.

Upon completion of the agreement, LEO Pharma made a payment to AstraZeneca of $115m for the exclusive, global rights to tralokinumab in atopic dermatitis and any future additional dermatology indications.

Tralokinumab is an IL-13 monoclonal antibody that has completed a Phase IIb trial for the treatment of patients with atopic dermatitis, an inflammatory skin disease resulting in itchy, red, swollen and cracked skin.

International infrastructure group Balfour Beatty announced on Tuesday that it has been awarded a $697m contract to undertake electrification of the 52-mile Caltrain rail corridor between San Francisco and San Jose, in preparation for the future operation of high speed trains.

The FTSE 250 firm said it is the largest contract secured by Balfour Beatty in the United States.

The electrification of the line is being undertaken to bring cleaner, high performance electric vehicles to Caltrain's fleet, Balfour Beatty said, allowing for a more frequent service.