London pre-open: Stocks set for rebound as attention turns to inflation data

Stocks in London were set for a firmer open on Tuesday in a rebound from the previous session’s losses, as investors turn their attention to UK inflation data.

The FTSE 100 was called to open 18 points higher than Monday’s close at 6,965.

On the macroeconomic front, UK CPI, RPI and PPI are all due at 0930 BST.

CMC Markets’ Michael Hewson said: “Today’s inflation numbers for September are expected to reinforce the recent rise in inflation expectations when CPI is expected to show a rise from 0.6% to 0.9%, while RPI is expected to rise from 1.8% to 2%.

“It is also worth keeping an eye on input prices, they rose 7.6% in August, and they are likely to stay at these levels and potentially head higher in the coming months, which is likely to pose a problem for retailers looking to maintain their margins.”

In the US, CPI is at 1330 BST, while the NAHB housing market index is at 1500 BST.

In corporate news, Burberry's like-for-like sales improved in the second quarter though for the full year its expected benefit from currency movements is not as big as analyst forecasts.

For the six months to 30 September, total revenue of £1.16bn was up 5% at reported level but down 4% underlying, with 11% growth in retail or 2% underlying at constant currencies.

Smiths Group announced on Tuesday that it has established a €2.5bn euro medium term note programme with its ten relationship banks as dealers.

The FTSE 100 firm said the EMTN programme will facilitate the issuance by the company of senior notes over time in various currencies and maturities as a continuing element of its financing strategy.

Vodafone has partnered with Iran’s HiWeb to provide telecoms infrastructure and internet of things services which would expand its presence in the country.

Vodafone agreed to modernise the internet service provider's network and IT infrastructure by expanding fixed and mobile internet services under the HiWeb brand in the country, while also providing marketing, sales and internet of things services.

In return, the agreement would let Vodafone provide its corporate customers with fixed and mobile services in Iran.