London pre-open: Stocks to fall as investors mull GDP

London stocks were set to fall at the open on Thursday as investors digest the latest UK GDP reading.

The FTSE 100 was called to open down around 50 points at 7,262.

Figures released earlier by the Office for National Statistics confirmed that the UK economy grew 0.8% in the first quarter of the year. This was down from 1.3% growth in the fourth quarter of 2021.

ONS director of Economic Statistics, Darren Morgan, said: "Our latest estimate for economic growth in the first quarter is unrevised as a whole, showing the UK economy continued to recover from the pandemic."

Meanwhile, data out in China showed the manufacturing purchasing managers’ index rose to 50.2 in June from 49.6 in May, coming in just below consensus expectations for a reading of 50.5. The non-manufacturing PMI ticked up to 54.7 in June from 47.8 the month before, versus consensus expectations of 50.5.

In corporate news, distribution and services group Bunzl said first-half operating margin was expected to be slightly higher than historic levels as inflation and acquisitions drove underlying growth.

Group revenue in the first half is expected to increase year-on-year by approximately 16% at actual exchange rates and by 12-13% on a constant currency basis, the company said.

Communications giant WPP has agreed to acquire Australian marketing technology services agency Bower House Digital for an undisclosed sum.

WPP said the acquisition was aligned with its accelerated growth strategy and focused M&A approach to build on existing digital experience capabilities. Bower House will join WPP's Ogilvy subsidiary's global network, further strengthening its ability to deliver technology-driven marketing solutions for clients.